January 7, 2010 4:02 PM

Report: Sonnenschein Worked for Treasury and Private Client on TALF

Posted by Ross Todd

A story in Thursday's Washington Times reports that Sonnenschein Nath & Rosenthal performed legal work for the U.S. Treasury Department on the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF) program at the same time the firm was lobbying Congress on behalf of a private client to have that program expanded.

The Treasury Department retained Sonnenschein more than a year ago to advise on TALF, a program aimed at boosting lending to small businesses and consumers. According to the Washington Times report, while advising the government on TALF, the law firm also lobbied Congress on behalf of the Recreational Vehicle Industry Association (RVIA), an industry group that wanted TALF to include loans for RVs.

Sonnenschein spokesman Jeffrey Mutterperl told the Times the firm's work for Treasury and the trade group never overlapped.

"With respect to our work for the RVIA regarding TALF, as disclosed in public filings, our representational activities were directed exclusively before Congress," Mutterperl said. "We are extremely vigilant in meeting our professional obligations to all of our clients."

According to the Times, Treasury spokesman Andrew Williams initially said department officials did not know about the firm's lobbying work on behalf of RVIA.

"Sonnenschein did not notify Treasury about its work on behalf of the RVIA," Williams said when first contacted by the Times about the arrangement. In addition, Mr. Williams told the Times, Treasury officials met with Sonnenschein lawyers "to discuss the issue and our expectations regarding notification of actual or potential conflicts of interest."

On Wednesday, Williams offered the Times the following addendum: "Our discussions with Sonnenschein led to a close dialogue between the Office of Financial Stability and Sonnenschein regarding the work it performs for other clients. That dialogue has been beneficial to ensuring our strict conflict of interest guidelines are effectively implemented."

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