CIA Nominee Panetta Received $700,000 in Fees
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By
GLENN R. SIMPSON
WASHINGTON -- The White House's nominee for Director of the Central Intelligence Agency, Leon Panetta, has earned more than $700,000 in speaking and consulting fees since the beginning of 2008, with some of the payments coming from troubled financial firms and from a firm that invests in contractors for federal national security agencies, according to financial disclosures released Wednesday.
Mr. Panetta received $56,000 from Merrill Lynch & Co. for two speeches and $28,000 for a speech for Wachovia Corp., according to disclosures released ahead of Thursday's scheduled Senate hearing on Mr. Panetta's nomination.
Both Merrill and Wachovia reported big losses last year and were acquired by larger firms. The Wachovia honorarium was dated October 30, and the last Merrill Lynch honorarium was dated October 11, according to disclosure forms filed by Mr. Panetta in connection with his nomination. At the time, Bank of America had agreed to a rescue of Merrill Lynch; Wachovia had agreed to be acquired by Wells Fargo & Co.
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[/align]Associated Press
The Senate confirmation hearing for Leon Panetta, nominated to be director of the CIA, is scheduled for Thursday.
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[/align][/align][/align][/align]Mr. Panetta's disclosure form illustrates how retired politicians commonly make money giving speeches and consulting for prominent companies with significant interests before the government. That was one element in the controversy over the cabinet nomination of former Senate Majority Leader Tom Daschle, who withdrew Tuesday.
The former White House chief of staff's disclosure form also shows the delicate balance President Barack Obama is trying to strike -- trying to curb the influence of lobbyists in his administration, while relying on long-time Washington veterans who often help clients navigate the halls of power. Mr. Panetta's forms show that he performed government affairs consulting last year and also sat on the board of a public affairs firm that lobbies Congress. Like Mr. Daschle, who also worked for a firm with lobbying clients, Mr. Panetta doesn't violate Mr. Obama's ban on hiring registered lobbyists.
"We anticipate that tomorrow's hearing will focus on the substance of Mr. Panetta's views about how to strengthen our intelligence gathering and keep our nation safe, as all of Mr. Panetta's income and investments have been thoroughly reviewed by the Office of Government Ethics," White House spokesman Tommy Vietor said.
Mr. Panetta also received a $28,000 honorarium from the Carlyle Group, a private equity firm that owns companies doing business with national-security agencies of the U.S. government. Carlyle holds a majority stake in the government consulting arm of Booz Allen Hamilton Inc., which works for the CIA and other agencies. A Carlyle spokesman said Mr. Panetta was paid to speak at an investor conference and that the matter was unrelated to Booz Allen or any other defense contractors.
Mr. Panetta also reported receiving a $60,000 "Governmental Advisor Fee" from the Pacific Maritime Association, which represents the shipping industry. The group lobbies the federal government regarding terrorism laws that affect shipping. A spokesman for the association didn't respond to a request for comment.
Mr. Panetta is a former Congressman from central California who served as White House chief of staff under President Bill Clinton. A White House spokesman said Mr. Panetta "provided consulting services on port security issues and some labor issues" to the Pacific Maritime Association. The spokesman said Mr. Panetta was "unaware" if his work was related to lobbying efforts by PMA in Washington that were described in public disclosure forms. Regarding potential conflicts of interest involving his speaking fees from Carlyle and other firms, the spokesman said, "All of his income and investments have been thoroughly reviewed by the Office of Government Ethics, and he will abide by whatever they require."
Fleishman Hillard, a large public affairs and lobbying firm, also paid Mr. Panetta $130,000 in director's fees. Fleishman vice chairman Paul Johnson said Mr. Panetta advises firm clients on policy and economic issues but performs "absolutely no lobbying or government relations work."
Another source of income for Mr. Panetta was California State University, Monterey Bay, which hosts the Leon & Sylvia Panetta Institute for Public Policy, a nonprofit foundation run by Mr. Panetta and his wife. The school paid Mr. Panetta $150,000 in "consulting fees," he reported. He also receives $50,000 as a "presidential professor" at its Santa Clara campus. A spokesman for the chancellor's office referred questions about Mr. Panetta's work there to Mr. Panetta's White House aides, who did not respond to requests for comment.
"”Susan Schmidt contributed to this article.
Write to Glenn R. Simpson at
glenn.simpson@wsj.com
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You too Panetta, cough it up!
