A secret club of current Senate staffers and Wall Street lobbyists is dragging down the chances for meaningful financial reform.
Staffers on the powerful Senate banking committee are part of what is known as “The Banking Blob,” a person familiar with the matter told us. The Banking Blob is made up of current banking committee staffers and former staffers who are now bankers or lobbyists. They frequently socialize together, often organising happy hours and parties.
“They move in a pack. They socialize together,” the person says. “Hell. They even inter-marry.”
The Blob is made up of both Republican and Democratic staffers. Outsiders tend to think the Blob members view themselves as “cooler” than other Capitol Hill staff members. Often a job on the banking committee leads to a well-paying job for a Wall Street firm or a position at a K-Street lobbyist law firm.
“The very worst example of the revolving door in Congress,” is how the person described the Blob.
“The idea that these people would actually develop legislation that Wall Street opposes” is a joke, the person said. “They are genetically incapable of doing it.”