Justin Daly on agency power

UPI

Economic Outlook: Lobbying revisited

by Anthony Hall

July 28, 2010

It seems likely -- it just happens to be wrong -- that lobbying for or against the new financial reform bill would be akin to water passing under the bridge.

The ink is dry on the presidential signature that put 2,300 pages of sweeping reform legislation into action. But lobbying continues in full force, The New York Times reported, as agencies newly created and fully established are mandated in the bill to write 290 rules that will affect everything from derivative and commodity trading to how much banks can charge retailers for consumer debit card use.

"If you look at a lot of the important provisions, Congress delegates authority to the agencies to make the really tough determinations. There's no question that this bill empowers regulators in a way that we've never seen before," said Justin Daly, a former Securities and Exchange Commission attorney who is now working for Ogilvy Government Relations, an in-the-trenches lobbying firm.

The Davis Polk law firm has provided a road map for lobbyists, the Times reported. The SEC has 95 new rules to write; the Commodities Future Trading Commission has 61 rules to establish. The Federal Reserve must pen 54 rules, the Consumer Financial Protection Bureau and the Financial Stability Oversight Council -- new kids on the block -- have 80 rules on their agenda.

The quote of the day in business belongs to exiting BP Chief Executive Officer Tony Hayward, pushed out the door by the public relations campaign he has bungled in the wake of the Deepwater Horizon oil spill in the Gulf of Mexico -- the largest offshore oil spill in U.S. history.

Hayward was given until October to clean out his desk after which he will become a director at TNK-BP, the oil giant's joint venture in Russia -- the equivalent of corporate banishment -- where his me-the-victim style might get better play. Robert Dudley, who will replace him as CEO, had his own difficulties running the Russian division, leaving in 2008 under pressure from Russians who wanted more say in running the company.

Hayward, who famously complained he wanted his life back after the oil spill consumed his yachting time said Tuesday that "sometimes you step off the pavement and get hit by a bus," seemingly yet another this-is-just-happening-to-Hayward faux pas.

BP also said Tuesday it would put $32.2 billion aside to cover costs associated with the oil spill although many analysts and BP itself expect the costs to climb far higher than that.

Another energy-related price tag hit the news this week. General Motors said Tuesday the Chevrolet Volt, a plug-in vehicle, would have a sticker price of $41,000 to go with its gas-free driving range of about 40 miles per battery charge.

Consumers will be able to take a $7,500 federal tax credit when they purchase the car but the industry and President Barack Obama clearly have more campaigning to do to convince consumers $41,000 for 40 miles of driving -- far less than the miles of coastline affected by the BP oil spill -- is better than buying another gas-powered vehicle.

After 40 miles a gas-powered generator kicks in to push the vehicle another 300 miles before it needs to nuzzle up to a 120-volt wall socket, although GM is offering a 240-volt option, which will be free for the first 4,400 Volt buyers.

In international markets Wednesday, the Nikkei 225 index in Japan rose 2.7 percent while the Shanghai composite index in China added 2.26 percent. The Hang Seng index in Hong Kong gained 0.56 percent while the Sensex in India lost 0.67 percent.

The S&P/ASX 200 in Australia rose 0.72 percent.

In midday trading in Europe, the FTSE 100 index in Britain fell 0.27 percent while the DAX 30 in Germany also declined 0.27 percent. The CAC 40 in France rose 0.38 percent while the pan-European DJ Stoxx 50 added 0.33 percent.