by Mark Silva and updated with a nod to Politico.com
Another senior-level and sensitive appointee of the Obama administration may be facing questions over his work in the private sector:
Leon Panetta, the president's nominee to lead the Central Intelligence Agency and a former chief of staff to President Clinton, has made hundreds of thousands of dollars in consulting and speaking fees.
His clients included a defense contracting firm, the Carlyle Group, and troubled financial firms - Merrill Lynch and Wachovia.
The Senate Intelligence Committee is set to consider Panetta's nomination on Thursday.
Some of the senators may be asking about disclosures that Panetta has filed with the Office of Government Ethics detailing his paid posts on a number of corporate boards, including BP Corp., and money made in speeches for Merrill Lynch and Wachovia - part of the $1.2 million he made from clients, firms and investments last year. Panetta, a former California congressman, reports assets of up to $3.7 million.
He has reported $831,500 in speaking and director's fees last year, $251,500 for speaking and $580,000 from boards.
He collected $120,000 in director's fees from BP and also from Fleishman- Hillard Inc., a St. Louis-based public relations firm that registered to lobby for about 40 clients last year. The firm, whose advisory board includes former House Speaker Newt Gingrich and former Homeland Security Secretary Tom Ridge, provides "counsel to clients -- in person, via video or through calls to decision- makers." But Bill Black, senior partner in the Washington office, told Bloomberg News that the board members aren't asked to do any of that. "I don't know of any instance he was asked to make a call on behalf of a client," Black said of Panetta. He said Panetta is "just kind of available to us for advisory purposes. He does a lot of kind of internal stuff.''
Panetta initially had encountered only minor political turbulence, when Intelligence Chairman Dianne Feinstein (D-Calif.) expressed dismay at having not been informed of the administration's nominee before he was announced. But now, in the wake of Tom Daschle's withdrawal from nomination to a Cabinet post amid controversy over back taxes that he only recently paid and consulting fees he drew from health care interests, the administration's CIA chief is likely to face some questions about potential conflicts. The intelligence community already is wary of an outsider taking charge.
Some of Panetta's speaking and consulting fees came from troubled banks and an investment firm that owns companies that do business with federal security agencies -- a $28,000 honorarium from the Carlyle Group. A Carlyle spokesman, Chris Ullman, told Bloomberg that Panetta spoke at an annual investors' conference, "which is unrelated to any of our portfolio companies," such as Booz Allen Hamilton,, an intelligence contractor for the government.
Panetta reports collecting $56,000 from Merrill Lynch for two speeches and $28,000 for an Oct. 30 speech for Wachovia - both troubled firms later acquired by bigger banks in the meltdown of the fiancial markets, firms which have in turn collected federal bailout funds. He also reported collecting a $60,000 "governmental advisor fee" from the Pacific Maritime Association, which lobbies the federal government on terrorism laws.
Politico.com advises us that they had jump on The Wall Street Journal on this, as opposed to the initial report here that the Journal was on it firstbut they're not the last to be asking questions about them this week.
The White House doesn't sound very worried, however. Panetta's income and investments "have been thoroughly reviewed by the Office of Government Ethics,'' spokesman Tommy Vietor says. "We anticipate that tomorrow's hearing will focus on the substance of Mr. Panetta's views about how to strengthen our intelligence gathering and keep our nation safe.''
Comments
lLooks like he has some nice problems for starters-
Posted by: Inky | February 4, 2009 8:31 PM
INKY AND THE 'NEWS' MEDIA NEED TO REMEMBER:
THEY SAID NOTHING ABOUT CONDI HAVING A CONFLICT OF INTEREST WITH CHEVRON---THE DICK CHENEY HAVING A HALIBURTON KBR CONFLICT (NOT TO MENTION THE VIETNAM WAR PROFITEERING OF KBR--NOT DISCUSSED EITHER).
Daschle shoulda been begged to stay. I hope Obama won't do what Clinton did--fail to stand by good people with MINOR problems. It ain't easy trying to serve the people AND hang out with the oligarchy in charge.
Posted by: Obama needs to stand up for his nominees | February 4, 2009 9:58 PM
Oh, no. A really experienced man that used to work in government received, gasp, gulp, lucrative fees to share his expertise with multi-billion dollar companies...where is my pitchfork? This is bordering on the ridiculous. If people want to investigate REAL corruption, then by all means, let's have at it. But if the media and pundits are merely going to engage in a witch hunt after every tom, dick, and harry, that made a significant amount of money after they left office because they had the nerve to advise the private sector in the area of their expertise, then it is going to be a long, long confirmation process.
Posted by: TW2 | February 4, 2009 10:01 PM
Richardson, Geithner, Daschle, Panetta, Clinton, Holder. Truly THE most corrupt administration in this nation's history. But then what should we have expected from a robot from the most corrupt entity ever: the Chicago and Illinois Democratic Machine?
Yep, change we can believe in!!
Posted by: John D | February 4, 2009 10:11 PM
The Obama administration is turning into a national embarrassment.
Paulo
Posted by: Paulo | February 5, 2009 12:32 AM
Carlyle Group. Bush, Inc.
Only thing worse would be Blackwater, or Whitewater, or Halliburton.
Posted by: ornery | February 5, 2009 1:19 AM
Okay...now it is a bad thing to earn money when you give up your government job. Once you have earned any money outside the beltway, you can never go back to government work and serve your country. If you ever think there is a remote possibility you may be looked at for an appointment or want to run for office, you should just stay home and twiddle your thumbs until an appointment falls in your lap or you decide to run for office. Otherwise, they need to hire only kids who just earned their BA so there is nothing that can possibly be a conflict. Give me a break!!!
Posted by: lochnessmonster | February 5, 2009 7:02 AM
"...thououghly reviewed by the office of government ethics"? What a joke.
Posted by: Granus | February 5, 2009 7:41 AM
During these "tough" economic times, as Obama speaks of, does anyone question why a group or corporation would pay these outlandish fees for a speech? Even in good times it seems absurd. And these "advisor" salaries are bogus. All this money is payoff and buying influence. Obama was going to "change" this culture wasn't he? Just as I suspected, SSDD. Now what excuse are you lefties going to make on this one?
Posted by: Bubba Porter | February 5, 2009 8:09 AM
Lets not forget the ties between the Bush family and big oil, or the Saudis. Lets talk about real conflict of interest.
Posted by: Rory M | February 5, 2009 10:52 AM
John,
I disagree that this Obama administration is the most corrupt in history. It would be very difficult to be more corrupt than the Clinton administration. However, everyone can certainly agree that it's looking like this administration will be a disaster. And I really like Obama saying how everyone voted for him because of the change he'd bring to economic policy...does he really believe the millions of blacks that voted for him sat down and studied the economic poicies of Obama and McCain, looked at their advisors and compared backgrounds, strategies, and theories and came to a conclusion that Obama's economic policies were more sound ???? No, I don't think he really believes that either. So, he's either incredibly ignorant or a liar, or maybe a bit of both.
Posted by: deuce | February 5, 2009 11:54 AM
Carlyle Group? Iran/Contra? They are 9-11 inside job conspirators along with Kissinger. Panetta is involved with these scum??? The head of Pakistans ISI was in US watching live the planes fly into the towers at a Carlyle Group directors meeting. Are we such sheeple that we are too afraid to face the truth? Has evil won?
Posted by: harry mellon | February 6, 2009 8:45 PM
Carlyle Group? Iran/Contra? They are 9-11 inside job conspirators along with Kissinger. Panetta is involved with these scum??? The head of Pakistans ISI was in US watching live the planes fly into the towers at a Carlyle Group directors meeting. Are we such sheeple that we are too afraid to face the truth? Has evil won?
Posted by: harrymellon | February 6, 2009 8:46 PM