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Albert R. Hunt
Some Holdouts to Obama’s Vow to Change Washington: Albert Hunt

Commentary by Albert R. Hunt


Oct. 26 (Bloomberg) -- Heather and Tony Podesta are conscientious objectors to the culture of change in Washington.

The husband and wife, with separate lobbying firms, are raking in millions from the insurance and drug industries, tobacco companies and corporate interests fighting changes to labor laws or the overhaul of the student-loan program.

Often their advocacy is at variance with the agenda of President Barack Obama and his party, yet the Podestas use their fundraising prowess for many top Democrats; they revel in flaunting their connections on Capitol Hill and in the Obama administration.

About 7,000 miles away in Tokyo, John Roos, a Silicon Valley attorney, is occupying the post once held by such distinguished statesmen as Edwin Reischauer, Mike Mansfield, Walter Mondale and Howard Baker. The new U.S. ambassador to Tokyo’s chief credential: He was a big fundraiser for Obama’s presidential campaign.

On Capitol Hill, ethics charges against Democrats such as House Ways and Means Committee Chairman Charles Rangel of New York and Republican Senator John Ensign of Nevada languish.

Obama last year promised change in Washington, which he said was only possible “without the same policies, the same lobbyists, or the same Washington culture.”

In nine months, the promise has exceeded the reality.

‘Influence-Seeking Money’

“There has been progress made on ethics and lobbying reform,” says Fred Wertheimer, the president of the Washington- based advocacy group Democracy 21 and a longtime advocate of campaign-finance reform. “But Washington still is a city dominated by influence-seeking money and special- interest lobbyists.”

To be sure, the president has enacted the most vigorous limitations on lobbyists participating in the administration in history. House Speaker Nancy Pelosi, a California Democrat, has pushed for tougher ethical standards and procedures.

Still, these changes are often overwhelmed by an ingrained money and political culture.

The Podestas personify that culture. In the third quarter, their two firms took in $8.4 million. (Tony is the brother of John Podesta, the civic-minded former chief of staff to President Bill Clinton and now head of a Democratic research group.)

The Podestas represent an array of interests. Their more than 75 combined clients include some non-corporate interests, on issues such as breast cancer or a newspaper shield law. These are in the minority.

Insurer, Utility

Heather Podesta’s clients include Philadelphia-based Cigna Corp., one of the insurance companies battling the White House’s proposals for a health-care overhaul; Southern Co., an Atlanta- based utility that’s fighting climate-change legislation; and Atlanta-based Home Depot Inc., which has been leading the battle against tougher labor laws.

Tony Podesta’s clients include Reston, Virginia-based SLM Corp., or Sallie Mae, which opposes the Democrats’ efforts to revamp the student-loan program; Cleveland-based BP America Inc., a major oil company; and Cincinnati-based Cintas Corp., a uniform company that’s also fighting the labor measure.

At the same time, few if any in Washington host more fundraisers for top Democrats than this duo, usually together. Tomorrow, the Podestas are having a “meet and greet” breakfast for freshman Representative Jim Himes of Connecticut.

Fundraising Dinners

More often their largess is for influential Democratic committee chairmen, and once they hosted a dinner at their home for the Democratic Congressional Campaign Committee. A few nights ago, Pelosi was one of the political all-stars attending Tony Podesta’s 65th birthday bash.

Tony Podesta insists there are no problems or conflicts.

“We have only some small differences with the administration and the Democratic leadership,” he says in an interview, adding that the White House has an “outreach to business” initiative headed by top aide Valerie Jarrett. He says he speaks to senior White House officials, though not Jarrett, and won’t say whether that includes Chief of Staff Rahm Emanuel. He says he is an Obama supporter, noting, “Not even the president has said that lobbyists should be banned.”

One area where the Obama administration has embraced the culture of the status quo is in its use of ambassadorships as political rewards, which candidate Obama vowed to minimize.

Of the 82 ambassadors named so far, 46 aren’t career Foreign Service officers, according to the American Foreign Service Association; that is the highest total in a half century, and more than the 30 percent of non-career diplomats tapped by President George W. Bush. It prompted Susan Johnson, the head of the American Foreign Service Association, to ask, “Where’s the change?”

‘Brilliant Guy’

Not all these have been political appointees, and some are praised for their expertise, such as Utah’s former Republican governor, Jon Huntsman, the envoy to China, and former Congressman Tim Roemer, who has been sent to India.

The Roos appointment, though, stands in contrast to the heavyweights previously named to represent the U.S. in Tokyo. “John Roos is a brilliant guy with a deep knowledge of commercial law, which is an issue that comes into play often in relations with Japan,” says top Obama adviser David Axelrod. He also arranged more than $500,000 in campaign contributions for the candidate last year and lacks the geopolitical standing of Joseph Nye, a former Defense Department official and Harvard University dean, who was passed over for the post.

Failure to Disclose

On Capitol Hill, Rangel, who heads the House’s powerful tax-writing panel, has been accused of failing to disclose certain assets, as required by law, not paying taxes on a home in the Dominican Republic and fundraising abuses. Ensign had a self-admitted affair with the wife of a top aide and then, according to published reports, tried to steer business to him as a form of hush money.

Lawmakers appear to be dragging their feet in both instances. Rangel -- a member of the House Congressional Black Caucus, several members of which also are under criticism for special interest-funded junkets -- is crying racism.

This business-as-usual culture is dangerous for Democrats.

Worries over the economy and anger over ethics are a lethal combination. That was the formula in 1994 when, in landslides, voters turned control of Congress over to Republicans; three years ago a similarly disaffected electorate threw the Republicans out of office.

To contact the writer of this column: Albert R. Hunt in Washington at ahunt1@bloomberg.net.

Last Updated: October 25, 2009 09:00 EDT