Capital One adds lobbyists amid regulatory battle

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Jun 26, 2024 View in browser
 
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By Hailey Fuchs

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With Daniel Lippman

CAPITAL ONE LOBBIES UP: Capital One is fortifying its lobbying army as its fight to acquire Discover heats up.

The bank has added another firm to its roster: Emergent Strategies. Its lobbyists will curry favor in Washington around “antitrust matters” among other issues, per a new filing published Tuesday under the Lobbying Disclosure Act.

The bank announced in February that it had reached an agreement to acquire Discover Financial Services in a $35.3 billion deal. Capital One’s CEO Rich Fairbank argued that the deal would allow Discover, a relatively small payment network compared to its larger U.S.-based peers, to better compete by scaling its business.

But progressive lawmakers swiftly called on federal regulators to kill the proposed deal. Sen. Elizabeth Warren (D-Mass.), Rep. Alexandria Ocasio-Cortez (D-N.Y.), Rep. Ro Khanna (D-Calif.), and others argued that the move would stymie consumers’ choices and cited President Joe Biden’s commitment to scrutinizing banking mergers to prevent “excessive market power.”

Sen. Josh Hawley (R-Mo.) also called for the acquisition to be blocked, citing competition concerns.

Capital One has said it is engaged with the Department of Justice, and the Federal Reserve Board and the Office of the Comptroller of the Currency will hold a public meeting in July to hear public comment on the matter.

Scott Eckart, a Democratic lobbyist and a founding partner at Emergent, said in a statement on Wednesday that the acquisition is “a portion of our work, but our efforts encompass a full suite of financial services and banking issues.”

The regulatory fight is likely to be a costly one for Capital One. After the deal was announced, the bank spent $810,000 on lobbying during the first quarter of 2023, per its disclosure. The firm already spends millions to lobby Washington each year and last quarter had more than a dozen lobbyists making its case, according to public records.

“Capital One continually assesses our resources and we are pleased to bring on the team at Emergent to help tell our story on Capitol Hill,” a Capital One spokesperson said in a statement.

Good afternoon, and welcome to PI. My name is Hailey Fuchs, and I’ll be helming the newsletter today and tomorrow. Please send me all your money-in-politics tips hfuchs@politico.com and follow me on X at @Hailey_Fuchs.

 

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SHEIN’S FLORIDA WOES: Shein, the controversial fast fashion retailer founded in China, has hit a snag in its efforts to get into the Florida Retail Federation, Daniel reported in Florida Playbook.

— "Company officials were hoping and expecting for their application to be considered at a board meeting of the association last week, but they didn’t even get a discussion on the application’s merits, let alone a vote to get in, according to a retail industry source familiar with the matter.”

— "For the last half year, Shein, now headquartered in Singapore, has been trying to get into the country’s largest state retail association to increase its presence in Florida’s capitol and to look out for its public policy interests.”

— "Even though Chinese retail behemoth Alibaba is a member of the National Retail Federation, the NRF also has repeatedly rejected Shein’s membership application amid concerns about the company’s origins and an effort by China hawks to persuade trade associations not to let in Chinese-linked companies. Spokespeople for Shein and the Florida association declined to comment."

FIRST IN PI: Daniel also uncovered a few other new details on Shein's efforts to win in the U.S. The company recently sent a government affairs staffer to a Park City, Utah, event hosted by the Republican Main Street Partnership, a group of moderate Republicans, according to a LinkedIn post from the staffer that was deleted after PI started asking questions. A spokesperson for RMSP declined to comment.

— And Shein is having a major D.C. shindig, the "Shein Summer Rooftop Reception," on July 24. The company invited a mix of Washington influencers and government officials, according to a copy of the save-the-date and a person familiar with the planning.

— "Shein regularly engages with stakeholders and thought leaders on issues impacting our customers," a Shein spokesperson said in a statement to PI.

SPOTTED ON THE HILL: Socialite Paris Hilton testified on Wednesday before the House Ways and Means Committee during a hearing about child welfare. Hilton spoke about her own traumatic experience in youth residential treatment facilities and her visits with foster and adopted youth in similar facilities.

— “This 23 billion dollar-a-year industry sees this population as dollar signs and operates without meaningful oversight,” Hilton told lawmakers. “What is more important, protecting business profits or protecting foster youth lives?”

— Hilton’s firm 11:11 Media Impact has hired ACG Advocacy to lobby around “youth treatment facility oversight.”

AIPAC’S VICTORY LAP: The American Israel Public Affairs Committee was celebrating Tuesday night as Westchester County executive George Latimer defeated Rep. Jamaal Bowman in the Democratic primary for New York’s 16th House district. The race became the most expensive House primary in history.

— “This triumph by a strong pro-Israel candidate represents a major victory for the Democratic mainstream that stands with the Jewish state and a defeat for the extremist fringe,” AIPAC said in a post on X.

— POLITICO’s Nick Reisman, Rich Mendez, and Emily Ngo report that AIPAC spent more than $14 million on TV ads to unseat Bowman. “And as the results rolled in, it became clear that AIPAC and its super PAC United Democracy Project had succeeded in making an example of the two-term member of Congress for routinely criticizing the Israeli offensive in Gaza.”

SPOTTED at APCO's Dan Meyers’ 40th birthday party at The GeorgeTown Club on Tuesday night: Gray TV's Kevin Latek, Haddad Media's Tammy Haddad, Shein's Kent Knutson, Cogent Strategies' Kimberley Fritts, National Association of Manufacturers' Jay Timmons, Chrys Kefalas, NBC’s Matt Glassman, NBC4's Tommy McFly, APCO’s Brad Staples, Evan Kraus, Kelly Williamson, Brandon Neal and Nina Verghese, CNN’s Peter Morris, Amazon’s Patrick Phillippi and DoD’s James Adams.

ALBANY GOLD RUSH: Lobbying spending is on the rise in New York state, Dan Clark of the Times Union reports.

— “A whopping $360 million was spent last year by groups seeking to influence state and local governments in New York — an all-time high since the state began tracking that data.”

— “That’s according to a report released Tuesday by the Commission on Ethics and Lobbying in Government, New York’s government ethics agency.”

— “The report shows that health care was a top focus of the money spent on lobbying last year along with education and gambling.”

 

A message from eBay:

Why do people trust eBay? It’s because we’ve invested billions into creating a seamless buying experience, backed by dozens of guarantees and programs that boost consumer confidence. By increasing trust in the small businesses that rely on us, we’ve transformed the original find-anything site into America’s go-to small business platform. Learn more about our innovations at eBaysmallbiz.com.

 
Jobs report

Grant Dixton is joining General Motors as EVP and chief legal and public policy officer, Playbook reports. He previously was chief legal officer of Activision Blizzard and previously general counsel at Boeing.

Andrew Olmem was appointed managing partner of Mayer Brown’s Washington office. Olmem was a deputy assistant to Trump and was deputy director of the National Economic Council.

Scott Wagner has joined Ballard Partners as a partner in its Tallahassee and Miami offices. He was briefly the former chair and CEO of the Never Back Down super PAC and is the former co-chair of Florida Gov. Ron DeSantis’ 2022 transition. He continues as the founder of Wagner Legal.

Chris DeRusha is now director of global public sector compliance for Google Cloud. He previously was federal chief information security officer for the U.S. and deputy national cyber director.

Corey Roush has become a partner in Sidley’s antitrust and competition practice. He previously worked for Akin Gump Strauss Hauer & Feld.

Ron Alquist is joining the Managed Funds Association as managing director of research, Morning Money reports. He was most recently the principal economist and senior policy advisor for the Financial Stability Oversight Council, and his resume includes work at the Office of Financial Research, AQR, Kings Peak Assets Management and the International Economic Analysis Department at the Bank of Canada.

Connor Dunn has joined the advisory and advocacy firm FS Vector as a principal. Dunn, an alum of Republican House Financial Services Chair Patrick McHenry’s office, was most recently the deputy policy director on Senate Banking for ranking member Tim Scott (R-S.C.).

Liftoff Campaigns is elevating Bennett Tyson to SVP of advertising and Chas Goldman to VP of comms, and adding Mary Beth Kennedy as digital manager, Anna Mason and Katie Knecht as digital strategists, and Antonio Casuso as senior advertising associate.

Mary Werden is joining ROKK Solutions as VP. She most recently was senior adviser and comms director for House Energy and Commerce ranking member Frank Pallone (D-N.J.).

Jude Sunderbruch, the former executive director of the Defense Department’s Cyber Crime Center, is now managing director at Cyber Crimes Lab, Morning Defense reports.

 

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New Joint Fundraisers

Webster Leadership Fund (Rep. Daniel Webster, COOL PAC, NRCC)

Michigan Victory Fund 2024 (Tom Barrett, Rep. John James, Grow the Majority Nominee Fund: MI-08, Michigan Republican Party, NRCC)

North Carolina Victory Fund 2024 (Laurie Buckhout, North Carolina Republican Party, NRCC)

 

A message from eBay:

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New PACs


Duty to America PAC (Super PAC)

PIT PAC (Super PAC)

Stand With America's Team (SWAT) PAC (Leadership PAC: Alison Esposito)

Mi Familia Decide PAC (Super PAC)

Moss & Associates LLC Political Action Committee (PAC)

 

A message from eBay:

When it comes to online shopping, trust is the most important currency. That’s why eBay has invested billions into innovations that boost confidence, including:
- AI tools that constantly monitor listings for dangerous and illegal items
- Investigators dedicated to preventing fraud and counterfeits
- Industry leading buyer protections and guarantees

In 2023 alone, 99.2% of prohibited item violations were blocked before ever appearing on the site. Increasing the trust, safety and transparency on eBay means people are more likely to buy from the small businesses who rely on us – which, in turn, boosts America’s small business economy.

Learn how we continue to power small business at eBaysmallbiz.com.

 
New Lobbying REGISTRATIONS

Lone Star Consulting, LLC: Schleicher County, Texas

Brownstein Hyatt Farber Schreck, LLP: Latham & Watkins LLP OBO Yale University

Emergent Strategies: Pharmaceutical Care Management Association

Emergent Strategies: Capital One Financial Corporation

Invariant LLC: Demotech, Inc.

CR Federal: Cite Armored

Pioneer Public Affairs: Snowsports Industries America

Crossroads Strategies, LLC: Spexi Geospatial Inc.

Crossroads Strategies, LLC: E-Z Treat, Inc.

IQOM Strategic Advisors, LLC: SIG

Ice Miller LLP: International Council Of Shopping Centers, Inc. dba ICSC

Wacker Chemical Corporation: Wacker Chemical Corporation

Oxford Strategies LLC-MD: Americans For IVF Reform

Allied For Progress: National Summer Learning Association

Akin Gump Strauss Hauer & Feld: REV LLC

Thorn Run Partners: Theragen, Inc.

O'Neil Bradley Consulting LLC: The Options Clearing Corporation

New Lobbying Terminations

Invariant LLC: National Veterinary Associates

 

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