Bush paybacks are just beginning.....old item......'Outsider' Bush Has Lots of K Street Connections
Meet the Lobbyists Who Will Gain Political Clout if Texas
Governor Wins the Presidential Grudge Match
By John Bresnahan
Even though Texas Gov. George W. Bush (R) is running for
president as a Washington outsider, a bevy of K Street lobbyists
are banking on a Bush victory to help boost their client rosters
next year.
Many prominent lobbyists were among the earliest and most
generous donors to the Bush campaign last year. A number of
the early "Pioneers" - those who have raised or given $100,000
to the Bush campaign - are denizens of K Street.
The Pioneers include: James Langdon of Akin, Gump, Strauss,
Hauer & Feld; former Rep. Thomas Loeffler (R-Texas), a partner
at the firm Arter & Hadden who represents such corporate
giants as Bristol-Myers Squibb Co., Citigroup and Whirlpool
Corp.; and Peter Terpeluk, a managing director at the American
Continental Group.
Lobbyists have given more than $638,000 directly to Bush as of
mid-August, according to the Center for Responsive Politics,
while raising millions more for their favored candidate.
Bush supporters, in fact, have begun pulling together another
big fundraiser for the candidate this month, hoping to raise as
much as $13 million in hard dollars for the Republican National
Committee's "Presidential Trust."
The Texas Republican also tapped into this political network
when he appointed the so-called "Gang of Six" to advise his
presidential campaign.
This collection of GOP operatives is made up of: ex-RNC
Chairman Haley Barbour; former Reps. Bill Paxon (N.Y.) and Vin
Weber (Minn.); Ken Duberstein, onetime chief of staff to
then-President Ronald Reagan; conservative commentator Mary
Matalin; and Republican strategist Ed Gillespie.
Rick Davis, the former campaign manager for Sen. John McCain's
(R-Ariz.) unsuccessful White House run, is also now on the Bush
team. Davis is a managing partner at the firm Davis, Manafort &
Freedman, whose clients include Comsat Corp., Intelsat and SBC
Telecommunications Inc.
Signaling the potential pitfall of having so many advisers on K
Street, Bush's connections to lobbyists have already caused him
some headaches.
One of his best-known fundraisers, Wayne Berman, a partner
with former Sen. Alfonse D'Amato (R-N.Y.) in Park Strategies
LLC, is reportedly being targeted by federal investigators for his
role in the transfer of $800 million from the Connecticut state
pension fund to private accounts.
While Berman has denied any improper activity, one of the
accounts that received the funds is run by the Carlyle Group, a
D.C. firm that retains former President George Bush as a senior
consultant. The fracas forced Berman to cut his ties to the
younger Bush's campaign.
And Ralph Reed, the former executive director of the Christian
Coalition turned political consultant and informal Bush adviser,
was found to be lobbying the Texan's supporters on behalf of
Microsoft Corp. After his activities were disclosed in mid-April,
Reed publicly apologized and promised not to do it again.
There's another reason why lobbyists have to be careful about
trying to cash in on their ties to Bush:The governor has a
history of cracking down on some lobbying activity.
Bush placed new restrictions on former aides turned lobbyists
following the 1996 hiring of Diane Allbaugh, wife of his campaign
manager, Joe Allbaugh, to lobby on behalf of several Texas
companies. The restrictions included requiring additional
disclosure for staffers married to lobbyists, all of which might be
painful for cozy Washington power couples.
Bush has "addressed the issue of the revolving door [for state
officials] and helped remove the appearance of impropriety,"
said Ray Sullivan, a Bush spokesman.
While noting that Bush hasn't addressed the issue of whether he
would attempt to put in place new restrictions on lobbyists,
Sullivan added that the Texan "believes that high standards and
ethical behavior are vitally important to restoring the public's
trust in government."
Bush has also proposed barring lobbyists from giving to
lawmakers while they're in session, part of the campaign finance
reform package he released during the heated primary battle
with McCain, although few expect the Texan to actually push
the issue if elected.
Sullivan claimed Bush would push his campaign finance reform
package if he becomes president, including the provisions on
political donations by lobbyists.
"It has worked very well in Texas," said Sullivan.
Some of the old Bush loyalists have also complained about being
excluded from the current campaign. While the appointment of
old political hands like Barbour, Paxon and Duberstein as informal
advisers eased fears that the campaign was too
"Austin-centric," there are still concerns that former Reagan and
Bush operatives like Charles Black, president and CEO of Black,
Kelly, Scruggs & Healey, and James Cicconi, AT&T's executive
vice president and general counsel, will be frozen out.
The following is an alphabetical list of some lobbyists who may
stand to gain from their Bush connections, derived from
conversations with Members, Congressional staff and K Street
insiders.
Mitch Bainwol
Managing Director
Clark & Weinstock Inc.
A former top official at the RNC, as well as senior aide to retiring
Senate GOP Conference Chairman Connie Mack (Fla.), Bainwol
could benefit handsomely from a Bush win.
A respected political strategist, Bainwol was in charge of the
platform-writing committee for the recent GOP convention,
where he helped Bush and his campaign staff avoid some of the
major squabbles that plagued other Republican presidential
nominees.
While Weber is the big name at the firm, and one of the "Gang
of Six," he made the mistake of backing McCain, which may
make lobbying a Bush-controlled White House a little awkward.
Clark & Weinstock's clients include some trade associations and
companies targeted by Democrats, such as the American
Association of Health Plans, Microsoft and the Pharmaceutical
Research & Manufacturers of America.
Haley Barbour
Chairman and CEO
Barbour, Griffith & Rogers
Along with partner Ed Rogers, Barbour is one of the most
influential GOP lobbyists in town, advising such high-powered
clients as Brown & Williamson Tobacco Corp., CBS Corp., Delta
Air Lines, Microsoft and US West Inc.
With the Bush campaign reeling, rumors swirled at press time
that Barbour was headed to Austin, Texas, to bail out the
campaign - which will make him that much tighter with Bush.
Early this year, Barbour sent a memo to Senate Majority Leader
Trent Lott (R-Miss.), a close political ally, and Speaker Dennis
Hastert (R-Ill.) urging them to send President Clinton the same
$792 billion tax cut legislation he vetoed last year.
Barbour argued that to make a deal on tax cuts with Clinton
would undercut one of Bush's strongest arguments for winning
the White House, although Lott and Hastert rejected his pleas.
Several months later, Barbour, who was a member of Bush's
exploratory committee, was brought in as an informal adviser to
the campaign.
In addition, one of Barbour's former employees, Chris Henwick,
joined the Bush campaign in May as a senior political strategist.
The buzz has been that Barbour may wind up serving in an
actual administration post if Bush wins - such as Commerce
Secretary - or he may just beef up his client list by informally
serving as the new president's buddy in the lobbying community.
Andrew Card
Vice President of Government Relations
General Motors Corp.
This secretary of Transportation in the first Bush administration
ran the GOP convention in Philadelphia, which could have done
nothing but strengthen his ties to Bush.
Card has a long history with the Bush family, including running
the New Hampshire primary operation in 1988.
Card was tapped to be White House deputy chief of staff in
1989. This followed several years as a special assistant to
Reagan. He was named in May to his convention post and
received high marks from GOP operatives for the inclusive nature
of the event.
General Motors and the rest of the U.S. auto industry have a lot
at stake in November, considering Vice President Al Gore's
well-known penchant for tougher environmental regulations. On
everything from global warming to tougher gas mileage
regulations for sport utility vehicles, many Detroit execs are
praying for a Bush victory.
Roy Coffee
Partner
O'Connor & Hannan
Little-known outside Republican circles, Coffee has strong
personal ties to the Bush family. Some lobbyists even go so far
as to refer to Coffee as the younger Bush's "eyes and ears" on K
Street.
Coffee, who has worked in the campaigns of former President
Bush and his son, ran Texas' office of state-federal relations.
After leaving that post, Coffee was hired in 1998 by a Texas
firm interested in hauling low-level nuclear waste into the Lone
Star State, a move that raised eyebrows around Austin at the
time. Coffee then joined O'Connor & Hannan in early 1999.
The firm represents such corporate giants as General Electric
Co., Lockheed Martin and VISA International & USA Inc.
Ed Gillespie
Partner
Quinn/Gillespie & Associates
Gillespie worked for House Majority Leader Dick Armey (R-Texas)
and then Barbour before going into business early this year with
Democrat Jack Quinn, former White House counsel to President
Clinton.
Gillespie played a major role in the GOP's convention in
Philadelphia. Smooth and articulate, Gillespie is a favorite of the
TV talk-show circuit, where his ability to use his post as Bush
adviser to defend the Texan's policy and political decisions.
Gillespie's current clients include Cisco Systems Inc.,
DaimlerChrysler Corp. and Viacom Inc., owner of CBS.
Benjamin Ginsberg
Partner
Patton Boggs LLP
While not technically a lobbyist, Ginsberg works at one of the
biggest lobbying shops in the city. A prominent GOP election
lawyer, Ginsberg has been working as the Bush campaign's
national counsel since 1999. Ginsberg's duties have included
vetting donors and defending against cybersquatters, as well as
asking the Federal Election Commission to allow more wide-open
fundraising over the Internet.
Ginsberg currently represents the National Republican
Congressional Committee, in addition to some work on leadership
PACs for several prominent GOP lawmakers, including Hastert.
He was chief counsel at the RNC from 1989 to 1993, adding the
title of general counsel in 1992. Prior to that, Ginsberg also
spent time as a lawyer at both the House and Senate
Republican campaign committees.
Despite the fact that he works at what has traditionally been a
Democratic firm, Ginsberg's reputation hasn't suffered.
Patton Boggs' enormous stable of clients includes many U.S. and
foreign companies, such as America Online, Inc.; General Mills
Inc.; MCI Worldcom, Inc.; Sony Electronics Inc.; and the
International Olympic Committee, as well as the governments of
Pakistan and Turkey.
Sheldon Kamins
Former Executive Director
GOPAC
Partner
Blum, Frank and Kamins
A Maryland real estate developer, Kamins is a co-chairman of
Bush's campaign in Maryland and a member of his national
campaign's finance committee.
A close friend of former Speaker Newt Gingrich (R-Ga.), Kamins
is well-known in Washington financial circles from his time at
GOPAC, which itself had an extremely sophisticated fundraising
apparatus.
Although not a lobbyist, Kamins and another prominent GOP
fundraiser - former Ambassador to Switzerland Joseph
Gildenhorn - have the kind of ties that could mean real influence
in a Bush White House. The two know a lot of very wealthy and
powerful people and are totally committed to Bush.Those
attributes have allowed both men to use their K Street contacts
to raise millions for the Texan.
Ron Kaufman
Senior Managing Partner
The Dutko Group Cos. Inc.
A former political director for President Bush, Kaufman is in a
similar position to Barbour, Black and Cicconi.
While some of the core Bush team has wanted to keep people
like Kaufman and Barbour out, they have both been given
informal roles in the campaign. The idea is that it's better to
have these people on the inside looking out than outside looking
in. Besides, their fundraising contacts might come in handy if
Bush is mired in a pitched battle with Gore.
"You have to take a really sophisticated view of it," claims one
GOP lobbyist. "The [Bush] campaign wants these people close,
and George W. has known many of them for years. They just
don't want them too close."
The Dutko Group's clients include ARCO, Federal Express Corp.,
Prudential Securities and Sprint.
Thomas Kuhn
President
Edison Electric Institute
Bush's old college classmate at Yale has been a major force in
raising money for the candidate among trade associations and
corporate CEOs, in addition to providing him with a major boost
early in the campaign.
Kuhn has joined with Washington heavyweights like Red
Cavaney of the American Petroleum Institute, former Rep. W.
Henson Moore (R-La.) of the American Forest & Paper
Association and Frederick Webber, president and CEO of the
Chemical Manufacturers Association, in soliciting corporate
dollars on Bush's behalf.
Kuhn, a Pioneer, has worked closely with Donald Evans and
other Bush finance staffers in rounding up support from industry
groups. Kuhn is also playing a key role in the latest fundraising
drive for Bush, seeking to steer as much as $13 million in hard
money into RNC coffers.
James Langdon
Partner
Akin, Gump, Strauss, Hauer & Feld
Langdon, a lifelong Democrat and friend to the GOP presidential
candidate for several decades, is one of Bush's top contacts on
K Street.
A Texan himself, Langdon was among the first lobbyists to begin
raising money for Bush's campaign, hitting up key business
community players to support his friend, as well as qualifying as
a Pioneer himself.
A Washington gala that Langdon helped put together in June
1999 raised $2 million for Bush and signaled the strong support
he could expect from K Street.
"Langdon has been there all along," said one former Republican
lawmaker who now makes his living as a lobbyist.
In addition, Langdon is close to Donald Evans, the finance
chairman for Bush's campaign who has since gone over to the
RNC.
Langdon, who helped lay the groundwork for the creation of the
Department of Energy back in the 1970s, runs Akin, Gump's
energy practice, including its business in Russia and the Caspian
Sea region. Exxon Mobil Corp. is one of the company's many
energy industry clients.
Thomas Loeffler
Partner
Arter & Hadden
This former four-term GOP lawmaker is extraordinarily well
positioned to benefit from a Bush victory in November.
Loeffler played a key role in raising money for Bush's successful
gubernatorial run in 1994 and was intimately involved in
President Bush's 1988 and 1992 campaigns.
The younger Bush also has appointed Loeffler to the board of
regents for the University of Texas, a post held by several
Pioneers.
Loeffler's clients include the American Gaming Association,
Monsanto Co., the Nuclear Energy Institute and United Parcel
Service, in addition to numerous foreign companies.
Deborah Steelman
President
Steelman Health Strategies
Steelman is one of the top health care lobbyists in town,
earning millions of dollars in fees annually from her impressive list
of corporate clients.
Steelman is also an adviser on health issues to the Bush
campaign, giving her a pivotal role in the race as Gore and the
Democrats force attention on the issue.
A former Reagan administration official who also has Hill
experience, Steelman has been accused in some press reports
of being too close personally to Rep. Bill Thomas (R-Calif.), who
could be the next chairman of the powerful Ways and Means
Committee.
Some GOP watchers, though, are convinced that Steelman
would want an administration post if Bush is victorious, rather
than remaining on K Street.
Aetna Inc., Bristol-Myers Squibb and Johnson & Johnson all
employ Steelman to watch over their interests in Washington.
Peter Terpeluk
Managing Director
American Continental Group
Terpeluk has been instrumental in helping Bush put together a
record fundraising blitz that has raked in more than $100 million
so far, and apparently is committed to continuing those efforts
right through November.
Terpeluk also raised significant funds for the GOP convention in
Philadelphia.
A former co-chairman of the National Republican Senatorial
Committee, Terpeluk has raised money for many pro-GOP
causes, including the Republican Governors' Association, giving
him a national network of donors to hit up.
Another member of the firm, David Metz-ner, has played a big
role in raising money for Bush as well.
ACG's clients include the Association of American Railroads,
Cisco Systems and PepsiCo. |
