Tim Pawlenty: Romney’s Campaign Co-Chair quits to become Wall Street’s Chief Lobbyist

by Lady Michelle-Jennifer Santos, Founder & Publisher and Political Strategist, et al.

September 21, 2012 (TSR) – Tim Pawlenty quit as co-chair of Mitt Romney’s presidential campaign on Thursday to become one of Wall Street’s top lobbyists in Washington. Pawlenty, a two-term governor, served as one of Romney’s top advisers, spoke at the Republican National Convention, and often appeared on television and at campaign events on Romney’s behalf, will soon lead the Financial Services Roundtable (FSR), formerly known as Bankers Roundtable.

Furthermore, this clears out the widely speculated runs against either Gov. Mark Dayton or U.S. Sen. Al Franken, Democrats who are both up for re-election in 2014.

It also rules out a Cabinet post that some of his closest associates thought possible if Romney were to defeat President Obama.

Pawlenty’s decision to leave the Romney campaign, 7 weeks before Election Day, the critical home stretch of the U.S. presidential race with the main GOP candidate slipping in the polls raised further doubts about the prospects for Romney’s winning against President Obama, something which has come under criticism and scrutiny from some Republican and other international strategists. Republicans outside the campaign have been grumbling that the campaign needs a shot in the arm especially when polls show the former Massachusetts governor running neck and neck with President Barack Obama in a contest both sides predict will be very close. But Romney’s campaign has been grappling now with a leaked video showing him seemingly writing off Obama supporters as having a “victim” mindset and being reliant on government handouts.

“It is an honor to call Mitt and Ann my friends,” Pawlenty said in a written statement released by the Romney campaign. “As the campaign moves into the home stretch, he has my full support and continued faith in his vision and his policies.”

“Tim Pawlenty is a dear friend,” Romney said in the same statement. “He’s brought energy, intelligence and tireless dedication to every enterprise in which he’s ever been engaged, and that certainly includes my presidential campaign.

“While I regret he cannot continue as co-chair of my campaign, his new position advancing the integrity of our financial system is vital to the future of our country,” Romney said. “I congratulate him.”

Romney passed over Pawlenty in his search for a vice presidential candidate, eventually settling on Congressman Paul Ryan. Pawlenty had been discussed as a possible running mate for Sen. John McCain in 2008, but the veteran lawmaker picked Alaska Gov. Sarah Palin instead.

The Financial Services Roundtable (FSR) represents 100 of the largest integrated financial services companies providing banking, insurance, and investment products and services to the American consumer.  Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO.

The Roundtable is one of the most powerful groups in Washington, next to AIPAC as far as influence, which represents nearly all of the world’s largest financial companies and it has a lot of influence as members rank higher than 99% of all the database of most influential people. Roundtable member companies provide fuel for America’s economic engine, accounting directly for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

Lobbying has always been a focus of the Roundtable. Through the years, millions have been spent on these efforts to influence U.S. Congress. From 2008 to 2011, an average of about $7.5 million was spent on lobbying each year. For 2012, they have spent $4.5 million so far,

Even before its founding, the Roundtable group contributed monies toward U.S. federal candidates has been spent.  The money spent from the 1990s to the present has not been given to just one party, but to both parties in Washington, Democrats and Republicans. From year 2000s and onwards, the political contributions has dramatically increased. Recipients of the Roundtable’s financial contributions include Speaker of the House John Boehner, House Majority Leader Eric Cantor, Maryland Congressman Steny Hoyer, Congressional Progressive Caucus member Xavier Becerra, senior Republican Senator Orrin Hatch, Senate Majority Leader Harry Reid, Senate Majority Whip Jon Kyl and many others.

Based on U.S. Federal Elections Committee (FEC) data as of September 3, 2012, Financial Services Roundtable (FSR) have given $382, 000 as political contributions to U.S. Congress members. 

U.S. House of Representatives received a total of $256, 000; with Democrats receiving $73, 000 while Republican,s a total of $183, 000. The following is the list of U.S. Congress members who receive financial contribution from the Rountable group:

U.S. Senate members received a total of $ 126,000; with Democrats receiving $ 49, 000 while Republicans, a total of  $77,000. The following is the list of U.S. Senators who received financial contribution for the 2012 cycle from the Roundtable group:

For political action committees (PACs) and political parties, FSR contributed $83,000 to the Republicans and $28,000 to Democrats this year.

Washington pundits speculated that Pawlenty’s move reflected a lack of faith in Romney’s chances against Obama, who has opened leads in a number of national and swing state polls.

The position will make Pawlenty one of the leading voices for the financial services industry in Washington at a time when Republicans are seeking to reverse many of the Wall Street restrictions passed in the wake of the 2008 financial crisis.

According to FSR, Pawlenty, whom they sought to lead the Wall Street group, will work to “influence” implementation of the Dodd-Frank Act, the 2010 law enacted in response to the nation’s worst financial crisis since the Great Depression.*

The trade group on Thursday named former Minnesota Gov. Tim Pawlenty its new president and CEO. Pawlenty will take over the key lobbying post for the financial services industry on Nov. 1. He succeeds Steve Bartlett, a former Congressman and member of the House Banking Committee for seven years before joining the Roundtable, who announced his retirement earlier this year.

Pawlenty’s job at the Roundtable will pay substantially more than any political office or appointment. While the lobbying group would not release Pawlenty’s annual salary, filings with the Internal Revenue Service show that Pawlenty’s predecessor, Steve Bartlett, was paid $1.8 million in 2010. As governor, Pawlenty earned about $120,000 a year. In 2011, as part of his presidential run, Pawlenty reported earning just over $700,000 in 2010 from his gubernatorial salary, royalty payments from his autobiography and speaking fees.

COMMENTARY

According to FSR, Pawlenty, whom they sought to lead the Wall Street group, will work to “influence” implementation of the Dodd-Frank Act, the 2010 law enacted in response to the nation’s worst financial crisis since the Great Depression.*

Why that issue in particular? I’d give Fraudfighters the honor of assisting in your enlightenment:

On August 21, 2012, a year after the United States Securities and Exchange Commission (SEC) whistleblower program was established, the SEC announced its first award under the new program.  The unidentified whistleblower is said to receive nearly $50,000 as his or her reward for helping the SEC stop a multi-million dollar fraud scheme.

In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act created a new program designed to give incentives for whistleblowers to disclose securities fraud, and other violations of securities laws, to the SEC.  The Dodd-Frank Act also protects those whistleblowers from retaliation by their employers.

Some common examples of securities fraud are market manipulation (heard of Libor anyone?), fraudulent accounting practices that misrepresent corporate assets or liabilities, insider trading, falsification of financial information in annual reports and other similar disclosures, fraud by brokers or investment advisors, and Ponzi schemes.  In addition, the Dodd-Frank whistleblower provisions also cover violations of the Foreign Corrupt Practices Act, the law that prohibits businesses from bribing foreign government officials.

Under the SEC’s whistleblower program, individuals can provide information relating to a violation of the securities laws directly to the SEC.  If the information provided leads to a successful judicial or administrative action by the SEC, then the SEC will award the whistleblower between 10 to 30% of the total amount of monetary sanctions collected.  The recent $50,000 award was for 30% of the recoveries—the highest possible award amount.

While the details of the underlying SEC action, including the defendants in the case and the specific allegations brought against them, have not yet been made public, the SEC stated that the court ordered more than $1 million in sanctions, $150,000 of which have already been collected.  Additionally, the SEC indicated that the court is considering issuing a final judgment against other defendants in the same matter.  Thus, the whistleblower in this case may well receive additional amounts, above and beyond the $50,000 already awarded.

Because of the enhanced anti-retaliation protections in the Dodd-Frank Act, the SEC has not revealed any information about this whistleblower’s identity or the information he or she provided that lead to the investigation.  But for the whistleblower to receive such a high percentage of the recoveries, we do know that the information provided must have been extremely valuable to the SEC’s investigation.

Interestingly, the SEC did not approve the claim of a second individual seeking an award on the matter because the information that second whistleblower provided did not contribute significantly to the ultimate enforcement action.  This highlights the important to speed in these cases.  A potential whistleblower can lose his or her right to an award if he or she delays too long in making a whistleblower claim with the SEC.

The attorneys at Tycko & Zavareei LLP are encouraged by the progress the SEC whistleblower program has made.  Without doubts, whistleblowers can provide very valuable help to the SEC in combating securities fraud and violations of the Foreign Corrupt Practices Act.  With the SEC receiving multiple tips every day, we anticipate many more similar announcements in the future.

Do you see one reason for why Pawlenty couldn’t wait until AFTER the Election Day? He has a lot of homework and strategy to do with and for Wall Street.

As for using this latest development in the bigger picture and using it as a geopolitical temperature:

Russia President Vladimir Putin realized that the American political system has no one better to offer than the liberal Barack Obama. Consequently, and quite reasonably, Putin has decided that he should back Obama on issues on which he can afford to back him.

However, if Romney wins, then Russia will and have to deal with Romney. Still, it is better to do business with someone who says he will be ready, if he wins, to meet Russia halfway on the issue of missile defense than to deal with someone who considers Russia to be America’s number one Enemy.

Obama was also instrumental in getting Russia into the World Trade Organization as this was his promise to Medvedev. Russians, just like anyone, do not forget small kindnesses and when people keep their word of honor. However, that doesn’t mean everything is dandy because the U.S. missile shield is what keeps the Russians up all night, and Obama with NATO has not been forthcoming just like what they are doing with China.

China also endorsed Obama, warning that Romney would provoke China by bolstering a robust U.S. military presence in the region, potentially causing “open confrontation between China and the U.S.” ( state-run China Daily). They consider Romney’s foreign policy as it is being presented now as something that will poison relations because of his Cold War mentality.

Moreover, claiming Romney’s support of Taiwan “lays bare his ignorance of the fundamentals of Sino-US ties”, according to China Daily  which also warns that Romney’s involvement in South China Sea disputes will “lead to head-on confrontation between the two countries.”

China Review News says, “Romney has dressed himself up as the dragon slayer extending an iron fist toward China, while Barack Obama’s China policy looks relatively mild and rational.”

Chinese and Russian experts have noth realized that the time of legendary U.S. presidents who speak from the heart and not controlled by anyone and the military industrial complex is long gone. We are dealing with a different kind of Republican and a different kind of Democrat. With the exception of Obama, no other true realists are visible on the political scene that Americans offer the world at this point.

Russia, China and the world has no reason to adore the 44^th White House incumbent, but since they are nervous of having a Romney White House and have no choice but to deal with it. Though Obama does not live up to his idol status, he certainly remains a preferable partner for Russia and China than Romney at this point. It looks that this is announcement of Pawlenty leaving Romney camp is a sign where this election is heading. But one never knows since there is the Zionist/Netanyahu factor. We will certainly be watching closely, even more so now that Obama is becoming more hostile.