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Thursday, December 8, 2016

Last Remaining Populist House Republican Faces K Street’s Own Wolf Of Wall Street

Last Remaining Populist House Republican Faces K Street’s Own Wolf Of Wall Street

by Lee Fang, Republic Report

Congressman Walter Jones, a Republican who represents a wide swath of eastern North Carolina, might not strike you as a populist. But as a lawmaker, the veteran politician with a slow Southern drawl has become a gadfly in his own party for thumbing his nose at powerful political interests. He is the only GOP co-sponsor of the DISCLOSE Act, a measure to reveal the donors of dark money campaign advertisements. He is among the loudest critics of the wars in Iraq and Afghanistan, telling an audience once that “Lyndon Johnson’s probably rotting in hell right now because of the Vietnam War, and he probably needs to move over for Dick Cheney.” And Speaker John Boehner removed Jones from the House Financial Services Committee, which oversees Wall Street. His sin? Bucking leadership and supporting many bills to further regulate the financial sector, along with serving as the last remaining House Republican to have voted for the Dodd-Frank reform package.

The Republican establishment has attempted to remove Jones from office by dispatching a number of primary challengers over the years. For this cycle, a former Bush administration aide named Taylor Griffin is the party favorite to finally wipe out Jones.

Several outlets, such as Bloomberg News, have reported that Griffin’s candidacy is being heavily promoted by the financial industry. JP Morgan Chase, Bank of America, Wells Fargo and other banks helped fuel the $114,000 fundraising haul Griffin reported in his first campaign disclosure report. Earlier this week, a SuperPAC financed in part by hedge fund titan Paul Singer went on air with a negative ad against Jones.

What hasn’t been reported, however, is that Griffin himself is a longtime political consultant for the biggest predators of Wall Street.

Republic Report has obtained a disclosure report that shows that Griffin’s client list reads like a who’s who of financial interests that have preyed upon North Carolina families for short term gain.

Griffin, whose career includes a stint on the the Bush election campaign team and Treasury Department, is a co-founder of Hamilton Place Strategies, a “policy and public affairs” firm that boasts of its team of former government officials. Like many companies that work to influence policy within the Beltway on behalf of corporate interests, Hamilton Place Strategies does not register under the Lobbying Disclosure Act, though it advertises its ability to shape the regulatory environment. The company, which specializes in public relations, is located a stone’s throw from K Street and the White House in a corridor of Washington favored by many influence peddlers.

Griffin touts himself as a conservative small businessman. His campaign website “About” section only makes a passing reference to his prior position with Hamilton Place Strategies, noting obliquely that he founded a “leading public policy consulting firm, quickly growing it to a business that included over 20 employees on its payroll.” Before launching his campaign in October, Griffin sold his share of the firm and moved to New Bern, a city within North Carolina’s third congressional district.

Griffin’s client list has never before been reported. But a mandatory candidate filing, disclosed by the House Clerk last week, opens a window into his business operation.

Griffin worked for Lender Processing Services Inc. (LPS), the infamous company that forged foreclosure documents on behalf of the big banks. In a practice that became known as “robo-signing,” LPS created over “1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.” Citigroup, Bank of America, Wells Fargo, JPMorgan Chase and Ally Financial allegedly used robo-signing to engage in unlawful foreclosures. The robo-signing tactics were reportedly used extensively in North Carolina.

Though Griffin revealed his LPS work on his disclosure form, he also refused to list other clients, noting that “certain confidential clients are not reported due to terms of agreement into at the time services were retained.” But public statements from his company, including from Tony Fratto, another co-founder of Hamilton Place Strategies, shows the firm has been working for Magnetar Capital, a hedge fund famous for helping inflate the housing bubble that led to the 2008 financial crisis.

In a Pulitzer Prize-winning article for ProPublica, reporter Jesse Eisinger revealed that Magnetar helped create “arcane mortgage-based instruments, pushed for risky things to go inside them and then bet against the investments,” a scheme that earned them hundreds of millions of dollars. Now, according to reports, Magnetar is back in the housing business, taking advantage of low prices to buy up homes and rent them out.

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