Here's House Committee on Oversight and Government Reform Ranking Member Issa's logic, according to his spokesman Kurt Bardella:
Any company that has borrowed taxpayer dollars should not be allowed to hire a lobbyist until the taxpayers have been repaid in full. Talk about a revolving door situation - there is no justification for allowing a company subsidized by taxpayer dollars to hire a lobbyist so they can try to influence the very government that owns the company.
This would affect firms including GM and AIG. Currently, Fannie Mae and Freddie Mac have to abide by similar rules. Think about the lunacy in these firms hiring lobbyists. That would be like if GEICO hired consultants to try to persuade Berkshire Hathaway shareholders to vote for a rule that would benefit it more than the holding company's other subsidiaries.
Issa's proposal is about as common-sense as you can get. It will be interesting to see if Democrats are willing to crack down on lobbyists or choose to make this a partisan issue. We should know tomorrow, as that's when the amendment is slated to come up for vote.
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