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July 28, 2019 | The Daily Beast
Facebook and Equifax Scammed Customers — and Revolving-Door Corporate Lawyers Made Sure They Got Off Easy
Last week, the Federal Trade Commission made clear that dishonestly undermining Americans’ privacy can remain a part of a successful corporation’s business plan. The commission closed its investigations into the two most prominent corporate data breaches in recent memory. The Equifax hack and Facebook’s Cambridge Analytica scandal investigations have yielded back-to-back out-of-court settlements that are all bark, no bite.
July 22, 2019
Revolving Door Project Requests Info On Big Tech Regulators
The Revolving Door Project’s mission is to scrutinize the nexus of corporate power and the executive branch. In the United States, two agencies within the executive branch have the power to seek to break up a company: The Federal Trade Commission (FTC), and the Department of Justice’s (DOJ) Antitrust Division. That is why it is important that we research any entanglements undermining the FTC and DOJ Antitrust’s commitment to serving the public interest.
May 16, 2019
The Oversight Options Available to the House Financial Services Committee
Eleanor Eagan and Jeff Hauser
The financial industry has been the driving force behind some of the most damaging economic trends of our time. In spite of this fact, since the spasm of reform reflected in the Dodd Frank Act, financiers have faced very little scrutiny from lawmakers. Instead of regulating the industry, many governing officials from both parties have chosen to collect campaign checks in exchange for helpful votes. Maxine Waters has rejected this complacency in favor of aggressive oversight. The committee’s failure to oversee the industry for so long, however, has left a significant backlog of issues to examine, in addition to the plethora of new and novel issues emerging under this administration. In an effort to help advocates and members of the public understand the scope of the task that the House Financial Services Committee (HFSC) faces, the Revolving Door Project has compiled a list of problems that deserve the committee’s scrutiny.
March 20, 2019
RDP Requests Record of Contracts between BlackRock and Key Federal Agencies
With just under $6 trillion in assets under management (as of year-end 2018) BlackRock is the largest money manager in the world. Virtually unheard of only a decade ago, it has now grown into one of the most powerful forces in financial markets and politics alike. Central to this ascendance was its risk management software, Aladdin. Aladdin — an acronym for Asset Liability and Debt and Derivative Investment Network — has become the “industry’s dominant platform for keeping track of portfolios.” It counts among its clients approximately 200 financial firms who use the software to manage approximately $18 trillion in assets.
February 26, 2019 | The American Prospect
BlackRock’s ‘Greenwashing’ Threatens to Undermine Climate Action
Fake environmentalism is an especially rampant and worrisome form of corporate propaganda—indeed, there is even a specific term for it. Scientific American defined the “essence” of “greenwashing” as efforts “falsely conveying to consumers that a given product, service, company or institution factors environmental responsibility into its offerings and/or operations.” If you want an idea of how empty these promises tend to be, consider that Donald Trump once signed a “Business Leaders” letter in The New York Times urging then-President Obama to aggressively push for climate action at the 2009 Copenhagen talks.
February 25, 2019
Comment by Jeff Hauser to FTC on Proposed Consent Agreement in the Matter of Staples/Essendant, Inc.
The proposed merger between Staples and Essendant has been the target of a great deal of deserving criticism. The Federal Trade Commission’s (FTC) decision and proposed consent agreement do not fully take into account the significant potential direct and indirect anti-competitive effects of this merger.
February 21, 2019
NYT’s Whitewash of Revolving Door Figure, Robert Khuzami
In this widely read article on President Trump and the Justice Department, the New York Times characterized the Deputy US Attorney for the Southern District of New York (SDNY), Robert Khuzami, in an entirely inaccurate manner. Not only was the characterization factually wrong, meriting a correction on its own, but it also gives readers unwarranted confidence in Khuzami’s independence. Indeed, Khuzami’s actual professional history merits serious scrutiny from the Times. The February 19, 2019 article stated that, “The inquiry is run by Robert Khuzami, a career prosecutor who took over after Mr. Berman, whom Mr. Trump appointed, recused himself because of a routine conflict of interest.” (emphasis added)The phrase “career prosecutor” conveys to a reader that Khuzami was a nonpolitical appointment who had spent the vast majority of his career in nonpolitical public service jobs prosecuting alleged criminals. Neither meaning is close to accurate, and the distance from truth actually elides the reason why Khuzami’s central role ought to stoke fear rather than generate calm.
February 09, 2019 | The Daily Beast
‘Middle Class Joe’ Biden Courts Wall Street Oligarch, BlackRock’s Larry Fink
Ever since Donald Trump secured the presidency in 2016, there have been those who have argued that Joe Biden is the Democrats’ only chance at victory in 2020. Why? He plays well with working- and middle-class voters who might otherwise vote for Trump. While many question the merits of this assessment, it appears that at least one important figure has embraced this interpretation: “Middle Class Joe” Biden (his nickname, he assures us).
November 13, 2018
How Goldman Sachs Still Holds Sway at SEC
With the departures of Gary Cohn, Steve Bannon, and Dina Powell from the White House, has Goldman Sachs’ initial influence on the Trump Administration dwindled?
CNN asked that question this spring, noting that “one by one, almost all the high-profile Goldman Sachs alums have left the White House.” But as CNN, to its credit, also noted that while who is up and who is down in the Trump White House changes, leadership at the Securities and Exchange Commission (SEC) has been more stable — and Goldman Sachs’ former lawyer, Chairman Jay Clayton, runs that key agency.
November 02, 2018
Want Transparent Government? Answer These Questions
At first glance, the contentious Brett Kavanaugh confirmation process and the Trump Administration’s response to the apparent brutal assassination of Jamal Khashoggi have very little in common. But there is one disturbing commonality — a shocking lack of transparency into the motivations of key players.
June 19, 2018 | The Hill
Dems Must Stop Picking Foxes to Guard the Financial Hen House
In May, the Revolving Door Project and over 30 other organizations urged Senate Democrats to push for strong progressives for the leadership positions at key financial agencies allocated to Democrats.
In the not too distant past, Democrats appointed revolving-door figures to these agencies little different than Republican nominees.
Democrats now have a chance to demonstrate that they have become the party of the people by whom they choose for open leadership positions at the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC).
May 22, 2018 | BuzzFlash
Trump's Federal Trade Commission Pick Has a History of Advising Corporations He Will Now Regulate
Only in a world in which the head of the Environmental Protection Agency treats the environment like an enemy of his family does the latest news from the Federal Trade Commission (FTC) make any semblance of sense.
On May 16, Trump’s handpicked FTC Chairman Joseph Simons and his fellow Republican commissioners installed revolving door veteran Andrew Smith to a senior leadership position at the FTC. Smith, who has spent several years specializing in advising firms which harm consumers, will now run the FTC’s Bureau of Consumer Protection.
March 14, 2018 | Slate
How Jeff Sessions Is Sneaking Trump Allies Into Key DOJ Positions That Normally Require Senate Confirmation
From investigating money laundering to enforcing America’s drug laws, U.S. attorneys possess a considerable amount of discretion in how to allocate the Department of Justice’s scarce law enforcement resources. Each of the 93 U.S. attorneys has the ability to make prosecutions of various federal statutes more or less likely and sentencing for any violations more or less draconian.
January 25, 2018
Revolving Door Project’s Director Jeff Hauser Reacts to Potential IRS Commissioner Nomination
The Revolving Door Project, with the support of a host of organizations interested in promoting good government (listed below), has for several months been shining a light on the importance of the IRS being run by either a Senate confirmed head or a career staffer. This effort has included sending letters to key congressional committees, the Treasury Department, and Inspectors General in December. Politico reported Tuesday that the Trump Administration has finally identified an IRS Commissioner to replace John Koskinen, who departed at the end of his term two and a half months ago. While it is far too soon to say if Charles Rettig is a good choice, it has been clear since David Kautter’s second job was announced that it is deeply inappropriate for a political appointee like Kautter to serve both as Assistant Secretary for Tax Policy as well as Acting Commissioner of the IRS.
October 26, 2017
Revolving Door Project’s Director Jeff Hauser Reacts to Trump Loyalist and Tax-Avoidance Professional Installed as IRS Commissioner
Jeff Hauser runs the Revolving Door Project, an effort to increase scrutiny on executive branch appointments and ensure that political appointees are focused on serving the public interest, rather than personal professional advancement. Today’s announcement that the Trump Administration would install David Kautter as the Commissioner of the Internal Revenue Service on November 12th, 2017 without a Senate confirmation process marks a further erosion of the Senate’s “Advice and Consent” power and a great day for all tax evaders, past and future. Kautter, a tax avoidance professional, has no history of work at the IRS, which many people have incorrectly assumed is (as it ought to be) a precondition for an ostensibly temporary hire. However, Kautter does have experience with the IRS. When Kautter was Director of National Tax at EY (formerly Ernst and Young) National Tax practice, their practices were so abusive that they ultimately had to pay $123 million to avoid criminal indictment. Why would the American people trust Kautter to rein in tax evasion when his firm behaved so egregiously under his ineffective and/or malevolent watch?