Pro-biz lobbying blitz takes on Wall St overhaul plan

Wall Street executives say that although they support increased regulation,the changes sought by Democrats could exacerbate the problems that emerged in the 2008 economic crisis rather than fix them. Among the targets of their criticism are the creation of a consumer fiscal protection agency,the establishment of a multibillion-dollar fund to head off bailouts of companies deemed “too big to fail,” and the regulation of derivatives as well as other high-risk trading instruments.

On the opposing side,labor unions and other groups are pushing hard to enact tougher measures,including provisions to rein in executive compensation and allow shareholders more say on a company’s board. Many of the arguments the financial industry is making in opposition to the plan echo the themes heard in the health care debate: more government involvement is the problem,not the solution; tightened regulation risks stifling competition; and the plan is fiscally irresponsible. But the common refrains mask the divisions among the legislation’s opponents,who tend to agree that the overhaul is dangerous but point to very different elements of the House and Senate plans.

“I don’t think there’s a unified business community position yet,nor do I think there will be because there are so many different interests,” Steve Elmendorf,a lobbyist for Citigroup and other major firms,said in an interview.

“There are obviously a lot of stakeholders here — Wall Street,big banks,hedge funds,insurers,mortgage brokers — who all care about what happens here,” he said.

Indeed,the issue has attracted a dizzying array of lobbyists since last year,when the House began considering,and ultimately passed,a bill to impose a wide range of new restrictions.