The story didn't make headlines, but it offered yet another glimpse of the endlessly spinning Washington-Wall Street revolving door: Peter Roberson, formerly a top policy adviser on the House financial services committee, recently left the committee to work as a lobbyist for a financial powerhouse in the derivatives industry—which also happens to be an industry the House committee is in charge of reforming as part of Congress' financial reform legislation.
Roberson's move to Intercontinental is so contentious because both the House and Senate are currently deciding whether to push much of the $600 trillion opaque, over-the-counter derivatives market onto transparent exchanges, like the New York Stock Exchange is for stocks. Intercontinental happens to own two major derivatives clearinghouses; the company processes trillions of dollars in derivatives trades. "This is a classic example of a revolving door abuse," Craig Holman, a lobbyist for Public Citizen, which backs tougher lobbying rules, told Bloomberg News. "He will be instrumental for Intercontinental." (Roberson did not respond to a request for comment from Mother Jones.)
Today, Roberson's former boss, financial services committee chairman Rep. Barney Frank (D-MA), blasted the former adviser's move. "I completely agree" with criticism of Roberson's departure from Hill staffer to financial lobbyist, Frank said in a statement. The Massachusetts congressman said that when he heard of Roberson's potential move, Frank ordered his committee to sever ties with the staffer. And while there's a one-year ban on Roberson's interaction with members of the financial services committee, Frank said he's extending that ban for as long as Frank chairs the committee.
Here's Frank's full statement on the matter:
"Several people have expressed criticism of the move by Peter Roberson from the staff of the Financial Services Committee to ICE, after he worked on the legislation relevant to derivatives. I completely agree with that criticism. When Mr. Roberson was hired, it never occurred to me that he would jump so quickly from the Committee staff to an industry that was being affected by the Committee’s legislation. When he called me to tell me that he was in conversations with them, I told him that I was disappointed and that I insisted that he take no further action as a member of the Committee staff. I then called the Staff Director and instructed her to remove him from the payroll and provide him only such compensation as is already owed.
Stories about this correctly noted that there is a one year ban on his interaction with members of the Committee staff, but I do not think that is adequate. I am therefore instructing the staff of the Financial Services Committee to have no contact whatsoever with Mr. Roberson on any matters involving financial regulation for as long as I am in charge of that Committee staff. Fortunately, examples of staff members doing what Mr. Roberson has done are rare, but even one example is far too much and that is why I wanted to make clear I share the unhappiness of people at this, and my intention to prohibit any contact between him and members of the staff for as long as I have any control over the matter."