WASHINGTON--(BUSINESS WIRE)--Last week, members of the legal, lobbying and political intelligence community convened to discuss the current state of the political intelligence industry. Held at Charlie Palmer Steak restaurant, the event focused on the challenges and opportunities presented by the STOCK Act and the effect of proposed registration of members of the political intelligence (PI) industry and the media – who function in many similar capacities as registered lobbyists.
Co-hosted by First Street and Women in Government Relations, the discussion panel included a political intelligence industry expert and members of the legal and lobbying communities: Michael W. Mayhew of Integrity Research Associates, Robert Walker of Wiley Rein LLP, J. Patrick Cave of the Cypress Group, Heather Podesta of Heather Podesta + Partners, and Stephen Stesney of the First Street Research Group.
“The involvement of recognized leaders from the legal and lobbying communities on the panel demonstrated the growing interest in the political intelligence industry,” said Stephen Stesney, panel moderator and analyst with the First Street Research Group, a political intelligence unit of CQ Press. “The industry is still young and its story has yet to be told. This discussion should spark many future conversations on the role political intelligence plays in government.”
Included in the panel topics was the history of political intelligence. Panelists agreed that the industry – despite the fact that many tie it solely to activity surrounding the STOCK act – has existed as long as there have been governments and investors, with its roots firmly in policy research. Two panelists cited the emergence of political intelligence surrounding asbestos hearings in 2000’s when line sitters for that hearing were holding spots for hedge funds who wanted to be first to know the outcome. The number of firms collecting “political intelligence” has been growing since the 80s. These firms are not lobbying, but instead selling analysis of collected information.
When defining the political intelligence industry, the panelists concluded that PI is one of two things:
- the research process for collecting industry policy research
- the deliverables of collected information (reports and analysis) sold to customers
“The political intelligence industry’s current challenge is separating itself from the STOCK Act,” said Stesney. “By defining the industry through its function of collecting information and analysis on any industry, it is easier to understand its benefits to lobbyists and corporations. We agree that political intelligence has very real value because being first to know is hugely important, but we have to be careful not to require registration that would create a chilling effect on the collection of government information.”
The distinction between the lobbying and political intelligence industries is becoming increasingly blurred. Podesta’s description of the two industries as having “difference without a distinction” prompted discussion of whether or not members of the PI industry should be required to register as lobbyists. The panelists were in agreement about PI registration but they differed on the topic of media registration:
- Cave felt that the specialized media should not be exempt from registering like lobbyists since they are providing similar content.
- Podesta expressed that registration would be a mistake because the media provides information to a wide-spread audience, not a small client base like lobbyists.
- Walker indicated that registering media would have a “chilling effect” on sources and could kill the news media’s best friend: the leak.
- Mayhew signaled out media services that provide industry analysis specifically geared towards Wall Street firms, in advocating for some level of media disclosure.
“The future of the industry is an open book. It’s a young industry that needs to mature, as the panelists pointed out,” said Stesney. “”The STOCK Act took a vague ethical framework of information exchange and made it concrete, and now the PI industry needs to take the opportunity presented and look to professionalize itself.”
To view the unedited footage of the event, please go to: http://www.youtube.com/watch?v=Pxm-T_8QKfY
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