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http://articles.latimes.com/2011/aug...ising-20110826
August 25, 2011|By Tom Hamburger, Melanie Mason and Matea Gold, Washington Bureau
August 25, 2011|By Tom Hamburger, Melanie Mason and Matea Gold, Washington Bureau
Perry will be hamstrung by new Securities and Exchange Commission rules that inhibit donations from financial services company employees to sitting governors. The regulations are intended to limit contributions that could influence state contracting decisions.
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Campaign finance lawyers are split on whether financial services employees affected by the rules could simply channel their money to super PACs working on Perry's behalf. Ken Gross of Skadden, Arps is urging affected clients in the financial services industry to be cautious about giving to a super PAC for Perry.
"You don't want to be doing something indirectly that you can't do directly," said Gross, who represents Democratic and Republican clients.
Republican campaign finance lawyer Jan Baran said he believed such donations would be permitted, but agreed that the new rules were worrisome for the campaign.
"Perry will definitely lose some campaign funds because of the pay-to-play rules," Baran said.
[..]
The so-called pay-to-play rules that went into effect in March prohibit any investment advisor who contributes more than $350 to state or local officials who can influence investment decisions from receiving payment from that government entity for two years. Legal experts are actively discussing how far the limits extend beyond individual advisors and firm executives.
Of the current Republican field, Perry, as a sitting governor, is the only candidate who would be affected by the regulations.
"This is a very big deal," Gross said. He said the new rules could affect "literally hundreds, if not thousands, of hedge funds and private equity firms."
Wall Street firms and investment banks are paying attention, he said, because the penalties of the new rules are "draconian."
"For investment advisors who do business with the state of Texas, it will have a chilling effect on their ability to contribute" to Perry, said Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable, a lobbying group representing the country's leading banks and investment firms.
[..]
Campaign finance lawyers are split on whether financial services employees affected by the rules could simply channel their money to super PACs working on Perry's behalf. Ken Gross of Skadden, Arps is urging affected clients in the financial services industry to be cautious about giving to a super PAC for Perry.
"You don't want to be doing something indirectly that you can't do directly," said Gross, who represents Democratic and Republican clients.
Republican campaign finance lawyer Jan Baran said he believed such donations would be permitted, but agreed that the new rules were worrisome for the campaign.
"Perry will definitely lose some campaign funds because of the pay-to-play rules," Baran said.
[..]
The so-called pay-to-play rules that went into effect in March prohibit any investment advisor who contributes more than $350 to state or local officials who can influence investment decisions from receiving payment from that government entity for two years. Legal experts are actively discussing how far the limits extend beyond individual advisors and firm executives.
Of the current Republican field, Perry, as a sitting governor, is the only candidate who would be affected by the regulations.
"This is a very big deal," Gross said. He said the new rules could affect "literally hundreds, if not thousands, of hedge funds and private equity firms."
Wall Street firms and investment banks are paying attention, he said, because the penalties of the new rules are "draconian."
"For investment advisors who do business with the state of Texas, it will have a chilling effect on their ability to contribute" to Perry, said Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable, a lobbying group representing the country's leading banks and investment firms.