CREW I citizens for responsibility and ethics in washington

March 22, 2010

By facsimile (202 898-6910) and first class mail

Federal Deposit Insurance Corporation ATTN: FOIA/PA Group

550 17th Street, N.W

Washington, D.C. 20429

Re: Freedom of Information Act Request

Dear Sir or Madam:

Citizens for Responsibility and Ethics in Washington ("CREW") makes this request for records, regardless of format, medium, or physical characteristics, and including electronic records and information, audiotapes, videotapes and photographs, pursuant to the Freedom of Information Act ("FOIA"), 5 U.S.C. §§ 552, et seq., and Federal Deposit Insurance Corporation ("FDIC") FOIA Regulation 12 C.F.R. Part 309.

Specifically, CREW seeks all correspondence between the FDIC and any member, committee, or employee of Congress related to all financial regulatory reform proposals and suggestions, whether initiated within the FDIC or Congress, between March 1, 2008 and the present. This request includes, but is not limited to: (1) the Blueprint for a Modernized Financial Regulatory Structure proposed in March 2008 by then-Treasury Secretary Henry M. Paulson; (2) financial regulatory reforms proposed by President Obama and Treasury Secretary Timothy Geithner on June 17,2009; (3) a group of reform bills passed by the House Financial Services Committee from October-December 2009' that were combined into the Wall Street Reform and Consumer Protection Act (H.R. 4173) and passed by the House on December 11, 2009; (4) legislation proposed by Senate Banking, Housing, and Urban Affairs Chairman Chris Dodd on November 11,2009, and (5) new legislation proposed by Chairman Dodd on March 15, 2010.

Please search for responsive records regardless of format, medium, or physical

1 These bills include: the Financial Stability Improvement Act (H.R. 3996); the Consumer Financial Protection Agency Act (H.R. 3126); the Private Fund Investment Advisers Registration Act (H.R. 3818); the Investor Protection Act (H.R. 3817); the Accountability and Transparency in Rating Agencies Act (H.R. 3890); the Over-the-Counter Derivatives Markets Act (H.R. 3795); the Federal Insurance Office Act (H.R. 2609); and the Corporate and Financial Institution Compensation Fairness Act (H.R. 3269). Several of these measures also were passed by the House Energy and Commerce Committee or the House Agriculture Committee.

1400 Eye Street, NW., Suite 450, Washington, D.C. 20005 I 202.408.5565 phone I 202.588.5020 fax

www.citizensforethics.org

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FOIAIPA Group March 22, 2010 Page 2

characteristics. Where possible, please produce records electronically, in PDF or TIF format on a CD-ROM. We seek records of any kind, including electronic records, audiotapes, videotapes, and photographs. Our request includes any letters, emails, facsimiles, telephone messages, voice mail messages, and transcripts, notes, or minutes of any meetings, telephone conversations, or discussions. Our request also includes any attachments to these records.

If it is your position that any portion of the requested records is exempt from disclosure, CREW requests that you provide it with an index of those documents as required under Vaughn v. Rosen, 484 F.2d 820 (D.C. Cir. 1973), cert. denied, 415 U.S. 977 (1972). As you are aware, a Vaughn index must describe each document claimed as exempt with sufficient specificity "to permit a reasoned judgment as to whether the material is actually exempt under FOIA." Founding Church of Scientology v. Bell, 603 F.2d 945, 949 (D.C. Cif. 1979). Moreover, the Vaughn index must "describe each document or portion thereof withheld, and for each withholding it must discuss the consequences of supplying the sought-after information." King v. U.S. Dep't of Justice, 830 F.2d 210, 223-24 (D.C. Cif. 1987) (emphasis added). Further, "the withholding agency must supply' a relatively detailed justification, specifically identifying the reasons why a particular exemption is relevant and correlating those claims with the particular part ofa withheld document to which they apply.'" Id. at 224 (citing Mead Data Central v. U.S. Dep't of the Air Force, 566 F.2d 242, 251 (D.C. Cif. 1977)).

In the event that some portions of the requested records are properly exempt from disclosure, please disclose any reasonably segregable non-exempt portions of the requested records. See 5 U.S.C. § 552(b). If it is your position that a document contains non-exempt segments, but that those non-exempt segments are so dispersed throughout the document as to make segregation impossible, please state what portion of the document is non-exempt, and how the material is dispersed throughout the document. Mead Data Central, 566 F.2d at 261. Claims of nonsegregability must be made with the same degree of detail as required for claims of exemptions in a Vaughn index. If a request is denied in whole, please state specifically that it is not reasonable to segregate portions of the record for release.

Fee Waiver Request

In accordance with 5 U.S.C. § 552(a)(4)(A)(iii) and 12 C.F.R. § 309.5, CREW requests a waiver of fees associated with processing this request for records. The subject of this request concerns the operations of the federal government and expenditures, and the disclosures will likely contribute to a better understanding of relevant government procedures by CREW and the general public in a significant way. Moreover, the request is primarily and fundamentally for non-commercial purposes. 5 U.S.C. § 552(a)(4)(A)(iii). See, e.g., McClellan Ecological v. Carlucci, 835 F.2d 1282, 1285 (9th Cir. 1987).

These records are likely to contribute to greater public awareness and understanding of

FOIAIP A Group March 22, 2010 Page 3

the influence of the FDIC on important financial regulatory reform legislation pending in Congress, and whether the FDIC's efforts to lobby Congress were proper. Understanding how interested groups influence government policy decisions is important to the public's understanding of government. See, e.g., Forest Guardians v. U.S. Dep't ofInterior, 416 F.3d 1173, 1179 (10th Cir. 2005); Natural Resources Defense Council v. U.S. EPA, 581 F. Supp. 2d 491,499 (S.D.N.Y. 2008). This contribution is especially pronounced where the entity trying to influence policy decisions is itself a government agency. Here, agencies potentially impacted by reform legislation have waged an intense "turf battle" to try to preserve their roles and power.

See Damian Paletta & Deborah Solomon, Geithner Vents At Regulators As Overhaul Stumbles, Wall St. J, Aug. 4, 2009 (attached as Exhibit A); Stephen Labaton, Geithner Takes Regulators To Task On Turf Battle, NY Times, Aug. 6,2009 (attached as Exhibit B). Agencies use their congressional liaisons and legislative affairs offices to influence legislation, see Joe Adler, Amid Reform Battle, FDIC Liaison Fights Lobbyist Ways, American Banker, Feb. 17,2010 (attached as Exhibit C), and questions have been raised about the propriety of agencies hiring former lobbyists to advance agency policy goals, see Ben Evans, Florida Democrat Calls Fed Adviser "K Street Whore," Assoc. Press, Oct. 27, 2009 (attached as Exhibit D); Robert Schmidt, Fed Intends To Hire Lobbyist In Campaign To Buttress Its Image, Reuters, June 5, 2009 (attached as Exhibit E). Disclosure of the requested records will shed light on the efforts by the FDIC to influence congressional policy-making.

In addition, federal law limits lobbying Congress by federal agencies, 18 U.S.C. § 1913, and disclosure of the requested will contribute to greater public awareness of whether the FDIC's efforts were proper.

CREW is a non-profit corporation, organized under section 501(c)(3) of the Internal Revenue Code. CREW is committed to protecting the public's right to be aware of the activities of government officials and to ensuring the integrity of those officials. CREW is dedicated to empowering citizens to have an influential voice in government decisions and in the government decision-making process. CREW uses a combination of research, litigation, and advocacy to advance its mission. The release of information garnered through this request is not in CREW's financial interest. In addition, CREW will disseminate any documents it acquires from this request to the public through www.governmentdocs.org.aninteractive website CREW founded that includes thousands of pages of public documents from a number of organizations in addition to CREW. CREW's website also contains links to thousands of pages of documents CREW acquired from multiple FOIA requests. See \vww.citizensforethics.org. CREW's website includes documents relating to CREW's FOIA litigation, Internal Revenue complaints, and Federal Election Commission complaints.

Under these circumstances, CREW fully satisfies the criteria for a fee waiver.

FOIAIP A Group March 22, 2010 Page 4

News Media Fee Waiver Request

CREW also asks that it not be charged search or review fees for this request because CREW qualifies as a "representative of the news media" pursuant to the FOIA and SEC regulation 17 C.F.R. § 200.80(e)(10). In Nat'l Sec. Archive v. U.S. Dep't of Defense, 880 F.2d 1381,1386 (D.C. Cir. 1989), the U.S. Court of Appeals for the District of Columbia Circuit found the National Security Archive was a representative of the news media under the FOIA, relying on the FOIA's legislative history, which indicates the phrase "representative of the news media" is to be interpreted broadly "if the act is to work as expected. . .. In fact, any person or organization which regularly publishes or disseminates information to the public ... should qualify for waivers as a 'representative of the news media." 132 Cong.Rec. S14298 (daily ed. Sept. 30, 1986), cited in id.

CREW routinely and systematically disseminates information to the public in several ways. First, CREW maintains a frequently visited website, www.citizensforethics.org, that received 62,064 visits in February 2010. The website reports the latest developments and contains in-depth information about a variety of activities of government agencies and officials. In addition, www.governmentdocs.org, the website CREW maintains that includes documents acquired through FOIA requests, received 12,375 visits in February.

Second, since May 2007 CREW has published an online newsletter, CREWCuts, that currently has 16,023 subscribers. CREWCuts provides subscribers with regular updates regarding CREW's activities and information the organization has received from government entities. A complete archive of past CREWCuts is available at http://www.citizensforethics.org/ newsletter.

Third, CREW publishes a blog, Citizens blogging for responsibility and ethics in Washington, that reports on and analyzes newsworthy developments regarding government ethics and corruption. The blog, located at http://www.citiznesforethics.org/blog. also provides links that direct readers to other news articles and commentary on these issues. CREW's blog had 1,619 hits in February.

Finally, CREW has published numerous reports to educate the public about government ethics and corruption. Examples include: The Revolving Door, a comprehensive look into the post-government activities of24 former members of President Bush's cabinet; 2009 Most Corrupt Members of Congress; 2008 Top Ten Ethics Scandals; 2008 Most Embarrassing ReElected Members of Congress; and Those Who Dared: 30 Officials Who Stood Up For Our Country. These and all other CREW's reports are available at http://www.citizensforethics.org/ reports.

Based on these extensive publication activities, CREW qualifies for a fee waiver as a

FOIAIPA Group March 22, 2010 Page 5

"representative of the news media" under the FOIA and agency regulations.

Conclusion

If you have any questions about this request or foresee any problems in releasing fully the requested records, please contact me at (202) 408-5565. Also, if CREW's request for a fee waiver is not granted in full, please contact our office immediately upon making such determination. Please send the requested records to Adam J. Rappaport, Citizens for Responsibility and Ethics in Washington, 1400 Eye Street, N.W., Suite 450, Washington, D.C. 20005.

JlZ'~

Adam J. Rappaport

Senior Counsel

Enclosures

EXHIBIT A

Geithner Vents at Regulators as Overhaul Stumbles - WSJ.com

Tuesday, August 4. 2009

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By DAMIAN PALETT A and DEBORAH SOLOMON

WASHINGTON -- Treasury Secretary Timothy Geithner blasted top U.S. financial regulators in an expletive-laced critique last Friday as frustration grows over the Obama administration's faltering plan to overhaul U.S. financial regulation. according to people familiar with the meeting.

The proposed regulatory revamp is one of President Barack Obama's top domestic priorities. But since it was unveiled in June, the plan has been criticized by the financial-services industry. as well as by financial regulators wary of encroachment on their turf.

Aqence France-Presse/Getty Images Treasury's Tirrothy Geithner told regulators 'enough is enough.'

Mr. Geithner told the regulators Friday that "enough is enough." said one person familiar with the meeting. Mr. Geithner said regulators had been given a chance to air their concerns, but that it was time to stop, this person said.

Among those gathered in the Treasury conference room were Federal Reserve Chairman Ben Bernanke. Securities and Exchange Commission Chairman Mary Schapiro and Federal Deposit Insurance Corp. Chairman Sheila Bair.

Friday's roughly hourlong meeting was described as unusual, not only because of Mr. Geithner's repeated use of obscenities, but because of the aggressive posture he took with officials from federal agencies generally considered independent of the White House. Mr. Geitnner reminded attendees that the administration and Congress set policy, not the regulatory agencies.

Mr. Geithner, without singling out officials, raised concerns about regulators who questioned the wisdom of giving the Federal Reserve more power to oversee the financial system. Ms. Schapiro and Ms. Bair, among others, have argued that more authority should be shared among a council of regulators.

"You are talking about tremendous regulatory power being invested in whatever this entity is going to be," Ms. Bair told the Senate Banking Committee last month. "And I think, in terms of checks and balances, it's also helpful to have multiple views being expressed and coming to a consensus. "

Geithner to Financial Rezulators:

Enough is Enough 2:22

Treasury Sec. Ttrrothy Geither scolded a group of financial regulators on Friday, in what's been described as an expletive-laced tongue-lashing. Deberah Solorron reports.

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Officials from the Federal Reserve and the Office of the Comptroller of the Currency, meanwhile, have questioned the creation of a new federal agency to oversee consumer regulations, a move that would take away powers from both institutions.

The government's proposal would empower the government to take over and break up

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Geithner Vents at Regulators as Overhaul Stumbles - WSlcom

large financial companies, merge two bank regulators, and toughen oversight of mortgages, among other things.

Administration officials say they aren't worried about the overhaul's prospects, adding that there is consensus on key aspects, including the regulating of over-the-counter derivatives. Treasury officials say they expected a big debate over the complex legislation. The first piece, which addresses executive pay, passed the House Friday.

"The industry is already back to their pre-meltdown bonuses," said White House Chief of Staff Rahm Emanuel. "We need to make sure we don't slip back to risky behavior where the institutions have all the upside and the taxpayers have all the downside, which is why we need regulatory reform."

Neal Wolin, Treasury's deputy secretary, said Mr. Geithner told regulators "they have the prerogative to express their views, but he wanted to make sure that, since everyone had agreed on the importance of achieving reform this year, everyone stayed focused on that goal."

Government officials said Mr. Geithner had expected regulators to object to parts of the plan that threatened their power or authority, but Treasury officials appeared caught off guard at how much the criticism resonated with lawmakers.

More

Mr. Geithner wanted to tell the attendees they shouldn't let turf battles get in the way of fixing a system that is clearly broken, Mr. Wolin said. He declined to comment on Mr. Geithner's tone and language.

Regulators Critique Reform Proposals Econ: Not First Time Geithner Has Blown His Top

Vote: How would you grade Geithner's performance as Treasury secretary?

In addition to Mr. Bernanke, Ms. Bair and Ms. Schapiro, other attendees at Friday's meeting were: Fed Governor Daniel Tarullo, Comptroller of the Currency John Dugan, Commodity Futures Trading Commission Chairman Gary Gensler and Office of Thrift

Supervision Acting Director John Bowman.

Spokespeople for all regulatory agencies represented at the meeting declined to comment.

At a House hearing last month, Mr. Geithner said it was "perfectly reasonable and understandable" that different federal agencies would balk at giving up powers. "Frankly, all arguments need to be viewed through that basic prism," he told the House Financial Services Committee.

The administration's proposal would give the Fed broad discretion to supervise any major U.S. financial company and would also create a "financial services oversight council" to coordinate policy and help resolve disputes among regulators.

How power would be balanced between the Fed and this entity has emerged as a flash point, one that administration officials debated. Ultimately, officials felt the regulatory structure needed a single point of accountability, arguing that one weakness in the government's response to the financial crisis last year was clarity over which entities were in charge.

The administration has pushed for Congress to complete the overhaul by the end of the year. House Financial Services Committee Chairman Barney Frank (D., Mass.) and Senate Banking Committee Chairman Christopher Dodd (D., Conn.) have both said that remains the goal.

Both men, however, have suggested the overhaul could change from Treasury's proposal. Sen. Dodd favors giving extra powers to an oversight council rather than the Fed. Mr. Frank said Monday lawmakers were still working on a way to "make sure you have a sufficient broad base of participation and input" and "to make sure you have effective authority."

He said the flap several months ago over the Federal Reserve's role in allowing American International Group Inc. to pay large bonuses to employees "damaged the Federal Reserve politically."

The top Republicans on these committees, Sen. Richard Shelby (R., Ala.) and Rep. Spencer Bachus (R., Ala.), have also expressed skepticism over ceding too much power to the Fed.

"A rush to judgment where they basically throw these things together without any consensus is going to be a disaster," Rep. Bachus said.

Write to Damian Paletta at damian.paletta@wsj.com and Deborah Solomon at deborah. solomon@wsj.com

Printed in The Wall Street Journal, page A4

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EXHIBIT B

Geithner Pressures Regulators on Banking Rules - NYTimes.com

http://www.nytimes.coml2009/08/06/us/politics/06regulate.html?pa ...

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August 6, 2009

Geithner Takes Regulators to Task on Turf Battle

By STEPHEN LABATON

WASHINGTON - In what has become a routine spectacle, financial regulators went to Congress this week and raised objections to major portions of President Obama's plan to overhaul financial industry rules,

The dissident regulators - senior officials at the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency - told the Senate banking committee on Tuesday that the new consumer protection agency the president proposes to transfer some of their authority to would never be as effective as they have been.

But instead of modifying or withdrawing the plan, the Treasury secretary, Timothy F. Geithner, has taken the regulators to task, warning them that they are partly responsible for the economic crisis and that their public objections are playing into the hands of industry groups seeking to kill the plan, officials involved in those discussions said.

Mr. Geithner also told the regulators that if the plan fails in Congress, it will be partly a consequence of their public challenges, which coincide with the views of the banks they supervise,

Mr. Geithner, in a brief interview on Wednesday, said he was confident that Congress in the end would adopt legislation embracing the administration's core principles. He said it was understandable that the regulators had tried to preserve their jurisdiction over consumer issues.

But he said he also warned them not to lose sight of the broader objective - getting approval of legislation that all of them largely support - instead of being used by opponents of the plan to kill or substantially dilute the legislation because of relatively modest policy differences.

"I have told them, 'Don't let your effort to defend your turf add to the complexity of getting legislation done,'" Mr. Geithner said. "I said, 'You all have a huge amount of credibility at stake.' "

Banks and regulators have resisted a proposal to create a new agency to regulate credit cards, mortgages and other consumer debt. Ben S. Bernanke, the chairman of the Fed, has told Congress that it would be better policy for the central bank to continue to write the consumer product rules. Sheila C. Bair, the head of the Federal Deposit Insurance Corporation, and John C. Dugan, the comptroller of the currency, have said that bank examiners at their agencies should continue to be the primary enforcer of consumer protection laws at those banks they already regulate for safety and soundness issues.

Ms. Bair, Mr. Bernanke and Mr. Dugan all head up independent agencies and were originally appointed by President George W. Bush.

Industry lobbyists could not be happier about the regulators' opposition.

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3119/20104:33 PM

Geithner Pressures Regulators on Banking Rules - NYTimes.com

http://www.nytimes.coml2009/08/06/us/politics/06regulate.html?pa ...

"It's entirely appropriate for the senior bank regulators, which lead independent agencies, to express different views because it makes for better policy making," said Camden R. Fine, head of the Independent Community Bankers Association. "They are team players - for the American people and for the banking industry. Just because they disagree over certain provisions does not mean that they do not share the same goals as the administration, which is creating a better system. They just have different approaches."

Edward L. Yingling, the veteran top lobbyist for the American Bankers Association, said that no one should be surprised by the public challenges to the proposal that have been raised by regulators. "Each of these people are known commodities and people on the Hill and you and others know where they are coming from and their philosophies," he said. "John Dugan was Republican counsel of the banking committee. Sheila has had strong views since she arrived at the F.D.I.C .. Ben Bernanke is very highly respected."

But the public dissent, which brought to the surface long-running debates that had been going on behind closed doors while the administration was drafting its plan, has taken senior Obama aides by surprise. The administration fears that it feeds industry opposition that has delayed action in the House and reinforced challenges in an already hostile Senate.

Administration officials, confirming an account first disclosed in The Wall Street Journal, said Mr. Geithner upbraided top regulators at a Treasury meeting for airing their views. The participants included Mr. Bernanke, Mr. Dugan and Ms. Bair.

One participant in the meeting said that the bank regulators felt that Mr. Geithner treated them like children being reprimanded by a parent. But the meeting appeared to do little to discourage the regulators from once again returning to Congress to express their concerns with elements of the plan, as Mr. Dugan and Ms. Bair did on Tuesday before the Senate Banking Committee.

There is a rich history of independent regulators taking positions that have frustrated the administrations they served. Franklin D. Roosevelt tried to remove a conservative member of the Federal Trade Commission in 1933 over policy disagreements, leading to a landmark Supreme Court decision, Humphrey's Executor v. United States, that limited the authority of the president to dismiss leaders of independent agencies for such reasons.

L. William Seidman, the top regulator of savings and loan institutions during that industry's crisis in the 1980s and 1990S, was a frequent public critic of proposals by the first Bush administration, and often ran political circles around senior officials. He once ridiculed a White House proposal to levy new fees on bank depositors to pay for the bailout, calling it a "toaster tax" because, instead of the banks giving a toaster to new depositors, the bank would take one. The appellation stuck and killed the proposal outright.

More recently, William H. Donaldson was pressured by the White House to step down as head of the Securities and Exchange Commission after his endorsement of proposals that administration officials opposed.

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3119/20104:33 PM

EXHIBIT C

Page 1

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1 of 1 DOCUMENT

Copyright 2010 SourceMedia, Inc.

All Rights Reserved American Banker

February 17,2010 Wednesday

SECTION: WASHINGTON; Pg. 1 Vol. 175 No. 25

LENGTH: 981 words

HEADLINE: Amid Reform Battle, FDIC Liaison Fights Lobbyist Ways

BYLINE: Joe Adler

BODY:

WASHINGTON - Paul Nash walks a difficult line.

As he provides lawmakers with continuing education about the Federal Deposit Insurance Corp., he finds it is hard at times not to be an advocate for an agency that has much to gain - or lose - during the financial reform debate.

But Nash, like other government relations experts for federal agencies, is forbidden by law from lobbying for the FDIC, and says he has to resist being a pitchman.

"I don't refer to myself as a lobbyist. I was one in the past," said Nash, the FDIC's chief congressional liaison. "It's just not what I do in this job."

Still, the former Verizon Wireless lobbyist - in the true sense of the word - and Senate Banking Committee staffer started his current job at the outset of the fight over regulation, in which the agencies are being redefined, competing for new authorities and, at the extremes, trying to survive.

"Right now all the agencies are a little bit in turmoil, and there is a tremendous reallocation of responsibilities that's ongoing," said Nash, who is 42.

Though the FDIC cannot press for certain powers, it can be a challenge for Nash not to want certain outcomes.

"On a personal level, you get invested in what you're doing," he said. "I'm not just going up there and saying things that I don't believe in."

For example, while the agency is officially neutral on whether it should resolve failed nonbanks, Nash finds fault with giving the power to another entity.

"I'm always looking for a good reason why it shouldn't be us, and I'm open to the possibility that there is one," he said. "I just haven't heard it yet."

A Washington native, Nash joined the FDIC about a year ago to fill a position created for him, just as the administration and Congress were gearing up for a massive regulatory reform effort aimed at preventing a repeat of the financial cnsis.

He serves as the deputy to FDIC Chairman Sheila Bair for external affairs. The position puts him in charge of three different agency arms: legislative affairs, ombudsman and the office of diversity and economic opportunity. Among his roles has been to establish the FDIC's advisory committee on community banking issues.

Page 2 Amid Reform Battle, FDIC Liaison Fights Lobbyist Ways American Banker February 17, 20 I 0 Wednesday

Previously, the FDIC's head legislative liaison was a lower-level staff post. But Nash, much like other senior officials since Bail' took over in 2006, reports directly to the chairman.

"In my role as deputy to the chairman, that's not necessarily a role that functions from chairman to chairman, so each new chairman or chairperson has the ability to choose his or her own deputy," Nash said. "I'm looking out for the chairman's interests" in the three areas under Nash's watch "and making sure that there's a seamless stream of information directly to her."

But Nash is also a resource for the agency's army of examiners and resolution specialists, who only hear the sound bites about the reform effort, as well as for lawmakers from districts with failed banks who want to understand the agency's processes.

"We have a lot of bank examiners who get up everyday and look at the newspaper and there's some new legislative proposal or some proclamation from Congress that directly affects their livelihoods," he said.

With the congressional debate over reform often dominated by rhetoric, Nash said he can help agency officials understand the political circus.

On the other side of the coin, when Congress may be going down a path that causes the FDIC concern, Nash can step in and try to explain why a piece of legislation could be a mistake.

"We provide information and explain the natural consequences of ideas that folks have," he said. "So, 'If you want to go down this road, here is what the real-world impact will be as we see it, just so you understand and that's what you intend to do.' We don't want unintended consequences."

Nash acknowledges the process results in his arguing on the agency's behalf, but only to a certain degree. He said other agencies may feel more compelled to lobby if the reform effort could result in a more drastic result for them.

"In a sense that is my broader responsibility to my agency, but I'm also the translator," Nash said. "I take the concerns that we have and I try to translate them in a way that's useful and meaningful for Congress to consider as they pursue this new regulatory landscape. If! were at an agency that were in jeopardy, I think that's a very difficult line not to cross."

Still, the FDIC has come under fire during the reform debate. The original bill from Senate Banking Committee Chairman Chris Dodd would have stripped the FDIC of its bank supervisory responsibilities - an idea that Bail' and the agencyadamantly oppose. Since that time, however, the FDIC has appeared to be on the verge of gaining power. Dodd is said to be considering a revised bill that would give the FDIC supervisory power over all state banks, including state member banks currently under the Fed's purview.

Nash's advocacy role was more explicit at Verizon Wireless, he said, where he was a director of federal affairs for eight years, focusing on telecommunications issues in the Senate.

Nash first become involved in public policy when, after leaving private law practice, he joined the 1996 election campaign of now-Sen. Tim Johnson, D-S.D., the No.2 Democrat on the Banking Committee and Dodd's likely successor as chairman next year. He stayed on as legislative staffer, advising Johnson on banking, health care and telecommunications.

Despite the efforts by policymakers debating a reform regime, Nash has his own doubts that a final bill can be hashed out. He worries that the pitfalls of health-care reform may be an omen for passing financial reform. "Soon we'll be into the election season. I don't think it's a foregone conclusion that we'll get legislation," Nash said. "I did work on the Gramm-Leach-Bliley legislation, and that took four or five Congresses to come to fruition."

URL: http://www.americanbanker.com/

LOAD-DATE: February 16,2010

EXHIBITD

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Copyright 2009 Associated Press All Rights Reserved Associated Press Online

October 27,2009 Tuesday 4:52 PM GMT

SECTION: WASHINGTON DATELINE

LENGTH: 378 words

HEADLINE: Fla. Democrat calls Fed adviser "K Street whore"

BYLINE: By BEN EVANS, Associated Press Writer

DATELINE: WASHINGTON

BODY:

The Florida Democrat who said Republicans want sick people to "die quickly" is again facing criticism for his rhetoric this time for calling a senior Federal Reserve adviser a "K Street whore" in a radio interview.

Rep. Alan Grayson hurled the insult at Linda Robertson last month on the Alex Jones Show, a syndicated talk radio program, while discussing the Fed's resistance to stronger congressional oversight. Robertson is a former Enron lobbyist and Clinton administration adviser who was hired by Fed Chairman Ben Bemanke this summer to help with congressional relations.

Washington's K Street is where many lobbyists, trade associations and law firms have their offices.

Grayson took exception to Robertson's role, saying she has criticized congressional efforts to increase oversight. "Here I am the only member of Congress who actually worked as an economist, and this lobbyist, this K Street

whore, is trying to teach me about economics," he said.

Grayson never identified Robertson by name, saying he couldn't remember her name, but he made clear whom he was referring to from her background and job.

His spokesman, Todd Jurkowski, defended the insult Tuesday.

"She had the audacity to attack a congressman who used to be an economist," he said. "She's a career lobbyist who used to work for Enron and advocates for whatever she gets paid to promote."

A spokeswoman for the Federal Reserve had no immediate comment.

Grayson, a liberal firebrand, drew strong criticism last month for saying that Republicans were ignoring sick people who die without health insurance, and that the GOP's health care plan amounted to wanting people to "die quickly" when they get sick.

He stood by the comments, leveraging the attention to do a series of national television appearances in which he ridiculed Republicans as "knuckle-dragging Neanderthals." He boasted that the attention has helped fill his campaign coffers.

Page 2 Fla. Democrat calls Fed adviser "K Street whore" Associated Press Online October 27,2009 Tuesday 4:52 PM GMT

Grayson did apologize for later likening the deaths of Americans without health coverage to a "holocaust." He then set up a Web site called "Names of the Dead," inviting people to list the names of loved ones who have died for lack of health care.

Andy Sere, a spokesman for the National Republican Congressional Committee, called Grayson "a vile and vulgar man."

LOAD-DATE: October 28, 2009

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Fed Intends to Hire Lobbyist in Campaign to Buttress Its Image

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By Robert Schm idt

II •••••• ~ ••••••• June 5 (Bloomberg) -- The Federal Reserve intends to hire a veteran lobbyist as it seeks to counter skepticism in Congress about the central bank's growing power over the U.S. financial system, people familiar with the matter said.

Linda Robertson currently handles government, community and public affairs at Johns Hopkins University in Baltimore, and headed the Washington lobbying office of Enron Corp., the energy trading company that collapsed in 2002 after an accounting scandal. She was also an adviser to all three of the Clinton administration's Treasury secretaries.

Robertson would help the Fed manage relations with lawmakers seeking greater oversight of a central bank that has used emergency powers to prevent Wall Street's demise. While she wasn't tied to Enron's fraud, her association with the firm may raise questions, analysts said.

"Some members of Congress think there are votes in attacking the Fed" after it "unnecessarily and unwisely entangled monetary policy with fiscal policy," said former St. Louis Fed President William Poole. "The Fed is going to have a tricky time of unwinding what has been done" and will need to "keep in touch with members of Congress more thoroughly," said Poole, now senior fellow with the Cato Institute in Washington.

Robertson served under Treasury Secretaries Lawrence Summers, Robert Rubin and Lloyd Bentsen. She didn't return calls seeking comment.

Summers Tie

Summers now heads the White House National Economic Council. Along with Treasury Secretary Timothy Geithner, he is leading Obama administration efforts to broaden the economic rescue and overhaul financial regulation. He has been mentioned as a possible successor to Fed Chairman Ben S. Bernanke should Bernanke not be renominated when his term ends in January.

Robertson is likely to start at the Fed in July and have the title of senior adviser to the Board of Governors, the people familiar with the situation said.

She was considered for a senior post under Geithner at the Treasury but ran up against the Obama administration's restrictions on hiring lobbyists, the people said.

"People have been asking whether the Fed is capable of getting its job done right," said Lynn Turner, a former chief accountant at the Securities and Exchange Commission. "Hiring a former lobbyist from Enron will surely make one wonder."

Lawmaker Pressure

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Robertson would confront a range of issues in the newly created position. Congress is looking to subject the Fed to more scrutiny, and some lawmakers have suggested that district bank presidents should be confirmed by the Senate.

Some legislators have also expressed opposition to the Obama administration's attempt to make the Fed the regulator in charge of financial companies deemed too-big-to-fail.

In addition, the central bank has been become a target to some members of Congress who've posted online videos of their interrogations of Fed officials during public hearings.

One YouTube clip, of Florida Democratic Representative Alan Grayson's grilling of Inspector General Elizabeth Coleman, has garnered almost 500,000 views in about a month.

Robertson is expected to advise the Fed on communications strategy, the people said. In recent months, Bernanke has pushed to make the traditionally secretive institution more open. He's done a television interview with CBS's "60 Minutes" program and taken questions from reporters at a National Press Club function in Washington.

According to her biography on the Johns Hopkins Web site, Robertson has spent more than 25 years working on federal legislative issues.

While Robertson's Hopkins biography makes no mention of her work at Enron, federal disclosure documents show she joined the company in 2000 after working at the Treasury. Robertson, who signed some of the forms, said she lobbied on energy and tax issues.

To contact the reporter on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net. Last Updated: June 5, 200900:01 EDT

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