A section of the Republican "Contract with America" that prohibits proxy voting could produce a lot more work for bank lobbyists.
The House rule, adopted the first day of the new Congress, requires all lawmakers to be physically present during a roll call vote. The days of passing along a slip of paper with a scrawled "aye" or "nay" are over. Even if lobbyists think they have the votes to ensure passage of a measure, they still must see to it that the lawmakers actually show up.
"It's going to be excruciatingly difficult to have your troops lined up and keep them lined up physically," said John Rippey, legislative director for the Bankers Roundtable. "There are going to be some very nervous lobbyists up here around House Banking once they get around to marking up some bills."
One can only wonder how different the results would have been for banks had the "no-proxy" rule existed in 1991 during the lengthy markup of the Federal Deposit Insurance Corporation Improvement Act.
"The FDICIA markup lasted for four days," Mr. Rippey said. "There's no way a member could have physically been there for that long."
The American Bankers Association preached a strategy last week for defending the industry's huge prospective decline in deposit insurance rates.
One bank lobbyist attending the ABA's Legislative Liaison Advisory Council meeting described the group's "wait-and-see" approach as follows: "There are some good things that are going to happen automatically, so let's not screw them up."
The council, which is more commonly referred to as "Lilac," held its annual confab in Palm Springs, Calif.
The Federal Deposit Insurance Corp. announced plans Jan. 31 to cut bank premiums to 4 cents for every $100 of domestic deposits. However, the agency proposed leaving thrift premiums at the current rate of 23 cents per $100. The coming gap in rates has put thrift industry lobbyists in a frenzy, but banking advocates are sitting back and watching.
The ABA says it fears that lobbying by groups such as the Independent Bankers Association of America for help from Congress in recapitalizing the thrift fund will only alarm lawmakers.
According to Leslie Woolley, deputy to FDIC Chairman Ricki Tigert Helfer, the agency will not solve the disparity problem by merging the funds.
"She said they'd be sure keep the BIF and the SAIF separate, and of course, bankers clapped like seals," said a lobbyist at the conference.
Former Rep. Larry LaRocco is the ABA's choice to head the American Bankers Securities Association, which was created late last year to increase the group's visibility on securities issues in Congress and among the regulatory agencies.
The Idaho Democrat was chosen from a group of finalists that included Peter Kinzler, former staff director of the House Banking Committee's financial institutions subcommittee, and Thomas P. Rideout, president of the ABA in 1988.
"Larry's extensive securities and banking background, combined with his talents in management and legislative strategizing, make him ideally suited to get this important project off the ground," said Don Ogilvie, ABA executive vice president.
The securities unit will coordinate with ABA's government relations group on issues such as Glass-Steagall repeal and derivatives legislation.
Rep. Jerry Weller, one of 15 GOP freshmen on the House Banking Committee, is planning to introduce a measure that could reduce campaign contributions by money-center banks.
The bill would require at least 50% of campaign contributions to come from a candidate's district.
"It really shouldn't have much of an impact on anyone's ability to raise money," said the Illinois Republican, who pulled in more than $1 million during his campaign.
