It’s another spin through the revolving door.
Scott O’Malia, one of the longest-serving and most influential US financial regulators, was negotiating with a powerful bank-funded lobbying group for its CEO position for months before accepting the job, even as he publicly weighed in on rules that could affect billions of dollars in transactions, The Post has learned.
O’Malia, 46, is currently the longest-running commissioner at the Commodity Futures Trading Commission, which regulates most of the $700 trillion derivatives market.
Starting next month, he will lead the International Swaps and Derivatives Association, a lobbying cabal that looks to weaken financial reform laws put in place after the financial crisis.
“They are an incredibly successful lobbying organization, and they are successful on a level that reaches beyond just passing a bill,” said Marcus Stanley, policy director for Americans for Financial Reform, an investor-advocacy group pushing for tougher banking rules.
“ISDA’s had a profound effect on the American financial system and the economy,” Stanley added.
The group is not afraid to show some muscle, either.
ISDA sued the CFTC last year — the association was looking to water down overseas derivative rules, claiming that they’ve overreached.
“He can go from planning the defense to planning the offense,” Stanley said.
O’Malia said in a phone call with reporters that he would “work on other matters outside the CFTC.”
But that won’t stop him from coordinating strategies for others at the lobbying group, said Project on Government Oversight investigator Michael Smallberg.
ISDA hired a CEO search firm after the current head, Robert Pickel, announced his resignation, said Lauren Dobbs, its spokeswoman.
After Pickel’s announcement, O’Malia was at a closed-door meeting between ISDA and regulators on the overseas rules, The Post has learned. Dobbs declined to comment on private meetings.
O’Malia didn’t return an e-mail seeking comment.