Disclosure Form Makes It Hard for Lobbyists to Disclose

Democratic Sens. Charles Schumer (N.Y.), center, and Claire McCaskill (Mo.) want to end a provision that allows representatives of foreign companies to register as domestic lobbyists. (By Charles Dharapak -- Associated Press)

Skeptics might dismiss their plan as a political ploy. After all, the presidential campaign of John McCain-- which both senators are trying to defeat -- is heavy with former lobbyists for foreigners.

Still, their proposal would have real impact if enacted. Registration as a foreign agent requires compliance with stricter disclosure rules.

But at least one lobbyist says the measure would close a loophole that doesn't really exist.

Todd M. Malan is president of the Organization for International Investment, the lobby for foreign companies with U.S. subsidiaries -- companies such as Michelin and Nestlé.

He has been telling lawmakers that the senators' Closing the Foreign Lobbying Loophole Act would make U.S. lobbyists for Nortel, the Canada-based cellphone maker, register as foreign agents, while Washington reps for Nortel's competitor, U.S.-based Motorola, could register under the less demanding domestic-lobbying statute.

Both companies are international firms with shareholders all over the world and substantial business in the United States, Malan said, but they just happen to have headquarters across a common border.

"I would be surprised," Malan said by e-mail, "if either of them [the senators] really want to discriminate against constituent companies or their employees."

Maybe. Maybe not. This is an election year after all.

A New Voice (Un)heard From

The housing legislation moving through Congress contains a section that establishes a stronger agency to oversee companies known as government sponsored enterprises (GSEs).

Most people think of the companies in that category (to the extent they think of them at all) as Fannie Mae and Freddie Mac. They are congressionally chartered giants that finance home mortgages.

In fact, a large network of banks called Federal Home Loan Banks are also GSEs (they, too, are congressionally chartered) and they are as worried about the legislation as are Fannie and Freddie.

The banks and their members are the largest sources of residential mortgage and community development credit in the United States. There are 12 Federal Home Loan Banks, each with a president and board of directors, located in different regions of the country. The system has 8,100 member lenders.