Wednesday, November 20, 2013

The emerging field of political intelligence - the fastest growing field you've never heard of

The Dish had a recent post telling how to profit from boring subcommittee meetings.

Hire yourself out to large businesses who want quick information about what is happening in these meetings.

From Mother Jones:

As Wall Street has pursued ever more complex ways to make a buck, the political-intelligence industry has boomed, bringing in $402 million in 2009, according to Integrity Research Associates, which tracks the PI sector. That's still small potatoes compared to the $3.3 billion lobbying industry, but it has caught the eye of critics who worry that it amounts to selling special access to the public's business. "This is basically the kind of thing that America hates," says former lobbyist-turned-reformer Jack Abramoff.

Heather Podesta, a corporate lobbyist who once proudly sewed a scarlet "L" on her dress at a Democratic convention party, recalls the moment several years ago when she realized political intel had taken on a life of its own. Hedge funders had packed the audience at a Senate hearing on asbestos legislation. They had no interest in the policy implications; they just wanted to find out first so they could place their bets for or against the asbestos makers. "The whole thing," Podesta tells me at the power-lunch staple Charlie Palmer, "was just so sleazy." Yet so long as they don't veer into insider trading or Abramoff-style shenanigans, the political-intelligence firms aren't breaking any laws. "All they're doing is discovering the information and conveying it," concedes Abramoff, whose influence-peddling schemes swept up a half-dozen Republican lawmakers and landed him in prison. "I'm not even sure if you made it illegal there's any way to enforce it. It's ingenious."

The political-intelligence industry began to take shape in the early 1980s. As federal regulatory power expanded, big business wanted to know what happened in obscure subcommittee hearings—and didn't want to wait for the next day's papers to read about it. In 1984, investment banker Ivan Boesky hired lobbyists to attend committee hearings about a big oil merger and report back to him. It paid off: Boesky made a cool $65 million just by finding out first and buying low. "Investors started to realize that there was money to be made by knowing what was going on in Washington and knowing it as quickly as possible," says Michael Mayhew, the founder of Integrity Research Associates.

Click here for a link to Integrity Research Associates.