Chris Dodd's crowning achievement in the Senate was his Dodd-Frank financial regulation bill. One of Dodd-Frank's provisions prohibited a market in Hollywood futures. The big studios, acting through the Motion Picture Association of America (MPAA), were big advocates of this prohibition.
Today, we learn that Chris Dodd has just been hired as CEO of the MPAA.
John Stossel covered the Hollywood futures thing well:
"It would give an opportunity for those trying to produce (small) films and get distribution ... by showing that the market thinks those films can make $10 or $20 million," Jacobs said.
The betting would start at the very beginning of the process.
"First, it's a script, an idea. Then, an actor or director signs on, and the value goes up. And by the time the trailer comes out, there's a very good sense of the valuation of the property."
But politicians called that "speculation" and "gambling." Can't have that!
"The Commodity Futures Trading Commission did a three-year review and concluded that there was legitimate economic purpose behind this market," Jacobs added.
But last year, then-Sen. Chris Dodd and Rep. Barney Frank said no.
Now I hear Dodd might be appointed head of the movie studios' lobby. Cozy. Maybe sleazy. But that's how politics and regulation work.
So, here's your update on the Great 2010 Cashout -- the Senators who retired in January, and how they're monetizing their years of public service.
Evan Bayh, D-Ind.: Lobbying firm McGuire Woods, and hedge fund the Apollo Group.
Bob Bennett, R-Utah: Lobbying firm Arent Fox, and his own lobby shop, the Bennett Group.
Kit Bond, R-Mo.: Lobbying firm Thomson Coburn.
Byron Dorgan, D-N.D.: Lobbying firm Arent Fox.