This is not the way to get the special interests out of politics

Opponents of the sort of campaign finance reform that John McCain has championed often argue that the only way to get special interests less active in politics is to get government less involved in every aspect of our lives. Right now interest groups are doing what they should be doing - trying to defend their interests from government interference and to get as much for their interests as they can when governments start crafting budgets. And what could be a bigger opportunity than this bailout bill?

And so they're gathering.

But with the bailout passed, lobbyists representing a variety of special interests are looking to play a much larger role in debate. Holland and Knight, K & L Gates, Patton Boggs, Steptoe & Johnson, Bracewell & Giuliani and several law firms announced the creation of financial services task forces that they are marketing to clients and potential clients as multi-disciplinary, one-stop shops for legislative, regulatory and legal advice. The task force press releases note former top officials at the Securities and Exchange Commission or the Office of the Comptroller of the Currency who may be employed at the firm.

An alert from Gibson, Dunn & Crutcher was typical: "As the administration and Congress move forward to address the liquidity crisis and related problems, we are positioned to keep our clients apprised of key developments and to ensure that their voices are heard in the debate about how to repair our financial infrastructure."

Lobbyists’ immediate focus is influencing how Treasury implements the massive bailout bill, a process that could be make or break for some financial institutions struggling under the weight of bad debts.

“Treasury can do pretty much whatever it wants, whenever it wants and however it wants,” said Steptoe’s Sinder.

Already, lobbyists are working to push their clients out front to ensure they are covered by the $700 billion program.

"The first debate is, ‘Who is going to be covered?’," said Oxford of Bracewell & Giuliani.”The front edge of this battle is what is going to trigger coverage.”

The next debate is how Treasury will value the bad debts clogging the credit markets, and who the department will rely on from the private sector to help them manage this massive program.

“There is no understanding of how the value will be determined,” Sinder said. “The question is going to be, how the Treasury process addresses that? ... They are going to need help.”