Was this vetted by regulators? Citigroup (C) has hired Richard Hohlt, a controversial defender of the saving and loan industry back in the 1980s crisis, as a political adviser. "He is an old Washington hand," Richard Parsons told the New York Times. "I hired him to keep me in touch with what's going on in Washington and what the mood and tenor of the town is." He apparently does not lobby.

The move surprised some observers because of Hohlt's activity in opposing the industry thrift reform efforts. He was also a lobbyist for Washington Mutual, a bank with no shortage of regulatory issues, and Fannie Mae, Sallie Mae and JPMorgan Chase (JPM). He has also lobbied on behalf of Time Warner, hence the Parsons lnk. You do have to wonder if this was discussed with the government, which owns more than a third of the bank.

The fees paid by Citigroup do not have to be disclosed apparently because Hohlt was not hired as an lobbyist. He says he's been hired to provide information to Parsons. Two sources told the Times that his specific task is to "advise Mr. Parsons on ways to blunt the demands of the FDIC." So does that mean Parsons, and not CEO Vikram Pandit, is heading up government affairs now? This sparks a lot of questions. 

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