And let me note that the staffer, Peter Roberson, deserves it.

Basically, this guy took lead on writing regulations on derivatives, and then he started shopping himself to hedge funds, and this Really pissed off Barney Frank:

But in late January, after learning that Roberson was interviewing for a position with ICE, Frank asked him to leave his post, removed him from the payroll, de-activated his email account and took his Blackberry, keys and identification credentials, according to both Frank and Frank’s spokesman.

And if that weren’t enough:

Frank said there is a rule which bans staffers who leave for industry positions from interacting with committee members for one year, but he doesn’t think this rule goes far enough.

Frank said Thursday he has instructed staff “to have no contact whatsoever with Mr. Roberson on any matters involving financial regulation for as long as I am in charge of that committee staff.”

(emphasis mine)

I will note that Frank did this a year ago with another former aid, where he forbade contact with Goldman Sachs lobbyist, and former committee staffer, Michael Paese, from contacting the committee while they were working on reform legislation, but that was only while the bill was being drawn up.

I am not sure if this has happened because Roberson’s behavior was particularly egregious, or if it was because the bleeding in staff was becoming excessive, but this is a much needed shot across the bow of the revolving door in the US Congress.

In either case, it’s pretty clear that Roberson is now radioactive, and that his market value as a peddler of access has been much diminished.

Frank’s official statement after break:

Statement of Financial Services Committee Chairman Barney Frank

Washington, DC – House Financial Services Committee Chairman Barney Frank (D-MA) today made the following statement about stories related to a recent staff departure from the House Financial Services Committee:

“Several people have expressed criticism of the move by Peter Roberson from the staff of the Financial Services Committee to ICE, after he worked on the legislation relevant to derivatives. I completely agree with that criticism. When Mr. Roberson was hired, it never occurred to me that he would jump so quickly from the Committee staff to an industry that was being affected by the Committee’s legislation. When he called me to tell me that he was in conversations with them, I told him that I was disappointed and that I insisted that he take no further action as a member of the Committee staff. I then called the Staff Director and instructed her to remove him from the payroll and provide him only such compensation as is already owed.

“Stories about this correctly noted that there is a one year ban on his interaction with members of the Committee staff, but I do not think that is adequate. I am therefore instructing the staff of the Financial Services Committee to have no contact whatsoever with Mr. Roberson on any matters involving financial regulation for as long as I am in charge of that Committee staff. Fortunately, examples of staff members doing what Mr. Roberson has done are rare, but even one example is far too much and that is why I wanted to make clear I share the unhappiness of people at this, and my intention to prohibit any contact between him and members of the staff for as long as I have any control over the matter.”

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