The Lobbyist: Key Leach Aide Says He Won't Jump Ship

Despite rumors to the contrary, House Banking Committee general counsel Joseph L. Seidel is not quitting.

Mr. Seidel acknowledged bank lobbyists are flapping lips about his desire for a new post, but he said the reports "aren't remotely true."

"I've been asked where I'm going to get a partnership or how big my office is going to be," he said. Right now, Mr. Seidel said, his focus is supporting Chairman Jim Leach's efforts to repeal Glass-Steagall limits on bank securities powers and to prepare other financial modernization legislation.

Over the holidays, Mr. Seidel worked like a man possessed drafting a Glass-Steagall bill that both bankers and their insurance industry rivals could support. Though the negotiations failed to bring the industries together on a deal, Mr. Seidel said he isn't fed up yet.

Mr. Seidel, a staffer on Capitol Hill since 1987, said he reevaluates his career at the end of every two-year congressional session - giving him roughly a year before he will even consider moving to the private sector.

***

Fannie Mae and Freddie Mac are the envy of Washington's influence peddlers. But the power of these government-sponsored businesses to protect profits and fend off critics like Rep. Leach didn't appear magically.

Both agencies spend liberally on campaign contributions and, as Fannie Mae recently proved, use fat paychecks to lure well-connected people.

Last week Sharon Canavan, former deputy legislative counsel at the Mortgage Bankers Association, became the latest of Fannie's hires.

As Fannie Mae's liaison to state governments, Ms. Canavan will use the contacts she developed performing essentially the same duties with the Mortgage Bankers.

Sources said Fannie, formally the Federal National Mortgage Association, has been bulking up its staff this year in areas where it wants to build influence as well as expertise. Most notable was the hiring a year ago of Duane Duncan, former aide to Lousiana Republican Richard Baker, head of the House Banking subcommittee overseeing Fannie Mae and Freddie Mac. Mr. Duncan joined Fannie's congressional relations team.

Another well-targeted hire was Jon Gauthier, who six weeks ago left his post as staff director of the House Veterans' Affairs housing subcommittee to join Fannie's lobbying team. Mr. Gauthier was a senior staffer at the Department of Housing and Urban Development in 1992 and 1993.

***

Expecting a lengthy legislative battle, the chairman and chief executive of California's Glendale Federal Bank does not want to wait for Congress to merge the bank and thrift charters.

Shortly before Christmas, Stephen J. Trafton traveled to Washington to pitch this idea to the American Bankers Association: allow banks and thrifts to switch charters without paying hefty fees for changing insurance funds.

Even if his plan goes nowhere, Mr. Trafton said he hopes his efforts will lure other "aggressive thrifts" into a discussion with bankers because, as he sees it, a new supercharter is at least a couple years away.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER