Just in time to face down Washington’s new regulatory mavens, the two major Wall Street lobbying groups, representing securities and bonds traders, have merged this year into a behemoth. Reports the Washington Post:
The Securities Industry and Financial Markets Association, with a budget of $80 million, is the main mouthpiece for the financial services industry, the biggest corporate player in national politics. Only organized labor donates more to candidates for federal offices.
When added together, SIFMA’s political action committees gave more than $1 million during the 2006 election season, putting the organization in the top 25 of all PACs. Its combined $8.5 million in spending on federal lobbying last year placed it in the top 30.
The association will need all that and more. It’s already at the center of some of the most heated, high-stakes battles on Capitol Hill. It has begun to question the regulatory requirements under the Sarbanes-Oxley Act and wants to extend the temporary, multibillion-dollar tax breaks for profits garnered from stocks and bonds.
Don’t expect Democrats to shoot this new K-Street Kong off the ramparts. House Speaker Nancy Pelosi’s top campaign donors? Securities and investment companies. Her supporters in Silicon Valley have argued Sarbanes-Oxley creates too many roadblocks to taking companies public. The Speaker supports reforming the law. Look for proposed administrative changes to Sarbanes by the SEC in a week or two.