More ex-regulators move to banks

July 28, 2010 | By Jim Kim

We're accustomed to lobbyists moving to the other side; it's fact of life in Washington. But when it comes to the financial services industry, is this revolving door spinning out of control? An analysis by the New York Times has found "that nearly 150 lobbyists registered since last year used to work in the executive branch at financial agencies, from lawyers for the Securities and Exchange Commission to Federal Reserve bankers."

On top of that, dozens of former government lawyers are now "scouring the financial regulations on behalf of corporate clients." This is no surprise, given the many decisions that must be made at the bureaucratic level. But it certainly makes one think the industry will fare very well as "reform" proceeds out of the public eye.

In the end, you get the feeling that for many regulators, civil service is merely one step on the path toward bigger bucks on the other side. You can't argue with people for wanting to improve their situation in life. However, it just might undermine the reform process in subtle ways. Any ideas?

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