Dennis Hastert problems are a small problem: We need to look further

http://www.truthdig.com/report/item/part_of_dennis_hastert_scandal_no_ones_paying_attention_to_20150609

This post originally ran on Robert Reich’s website.

Washington has been rocked by the scandal of J. Dennis Hastert, the longest-serving Republican speaker in the history of the U.S. House, indicted on charges of violating banking laws by paying $1.7 million (as part of a $3.5 million agreement) to conceal prior misconduct, allegedly child molestation.

That scandal contains another one that’s received less attention: the fact that Hastert, who never made much money as a teacher or a congressman, could manage such payments because after retiring from Congress he became a high-paid lobbyist.

In viewing campaign contributions as the major source of corruption we overlook the more insidious flow of direct, personal payments – much of which might be called “anticipatory bribery” because they enable office holders to cash in big after they’ve left office.

For years, former Republican House majority leader Eric Cantor was one of Wall Street’s strongest advocates – fighting for the bailout of the Street, to retain the Street’s tax advantages and subsidies, and to water down the Dodd-Frank financial reform legislation.

Just two weeks after resigning from the House, Cantor joined the Wall Street investment bank of Moelis & Co., as vice chairman and managing director, starting with a $400,000 base salary, $400,000 initial cash bonus, and $1 million in stock.

As Cantor explained, “I have known Ken [the bank’s CEO] for some time and … followed the growth and success of his firm.” 

Exactly. They had been doing business together so long that Cantor must have anticipated the bribe.