Baldwin Takes Aim At ‘Revolving Door’ Between Washington, Wall Street

Wisconsin U.S. Sen. Tammy Baldwin has introduced a bill that she says would cut back on conflicts of interest between financial institutions and the officials that regulate them.

When the so-called Dodd-Frank legislation was signed into law five years ago Tuesday, lawmakers hoped it would prevent another financial crisis like that of 2008. But Baldwin, a Democrat, is expressing concern that there are efforts underway to diminish those reforms.

Baldwin said the bill she’s introduced will weaken the “revolving door” from Wall Street to government offices, like the Treasury Department, Securities and Exchange Commission, and the Federal Reserve Board.

The legislation would prevent government employees from receiving bonuses from former employers. It would also require workers to wait two years to lobby after leaving a government job. Likewise, federal examiners could not take jobs with institutions they oversaw for the same period. Baldwin said regulators would have to recuse themselves from work involving former employers or clients.

“Being a public servant means they have the American public in mind first and foremost. Public service should be an honor, not an opportunity to cash in,” said Baldwin.

Workers found violating the laws could face jail time as well as hefty fines.

Republican Sen. Ron Johnson’s office did not respond with a comment on the legislation.