If you write a law slapping a series of complex regulations on financial institutes, you become a valuable asset to those banks. Politico Influence’s Byron Tau and Anna Palmer report [emphasis added]:
Two veteran staffers of former Rep. Barney Frank have launched a consulting firm, Giesta Racalto Solutions, with offices in Alexandria, Va., and New Bedford, Mass. Maria Giesta, former chief of staff and staff director to Frank, and Joe Racalto, former senior policy adviser to the Massachusetts Democrat, are opening the shop, which will focus on New England. The firm will specialize in municipalities, education and regulatory compliance for legislation like Dodd-Frank and the Affordable Care Act…..
A year and a half ago, I wrote:
It may not prevent another bailout or protect consumers from dangerous financial products, but the Dodd-Frank financial regulation law — now one year old — has already benefited one group of people: the government officials who wrote and implemented the law before cashing out as lobbyists or consultants for Wall Street, hedge funds and big banks.
This happened with Obamacare, too. In fact, one ObamaCare author — Peter Rubin, an aide to Senator Barbara Mikulski — has launched his own lobbying firm, Rubin Health Policy Consulting.
Think about the incentives here for our public servants: increase government’s role in the economy, but preserve the ability of private players to make a profit; that way you increase the demand for the public servants to come work for the affected industries.