Instead of leaving it to Congress to draft banking legislation, bank lobbyists have been making bold suggestions as to what should be in particular reform bills.
The situation sparked an editorial in The New York Times.
With banking experts often having a great deal of information at their disposal, it's not uncommon for experts in a particular space to be involved in the proposal process. However, lobbyist involvement is creating some controversy.
Per the Fiscal Times:
After the House committee drafted a bill that would force regulators to exempt trades of certain types of derivative trading from the new Dodd-Frank regulations, corporate lawyers like Michael Bopp weighed in with their suggested changes, The New York Times’ Eric Lipton and Ben Protess write. “At one point, when a House aide sent a potential compromise to Mr. Bopp, he replied with additional tweaks.”
