By July 1st, I think it's safe to say you've heard of RFK Jr. He's been on several very popular podcasts recently, especially after announcing his campaign for presidency in April. You've probably heard him speak about the topic of regulatory capture, and he even has a section of his campaign website under Priorities that shares the concept: Honest Government.

If you're like me, sometimes details help make a point a little better. So I asked professor ChatGPT for a little help here, and I thought I'd share what I found with you since I think it's a tricky subject, but a very important one to understand.

What is Regulatory Capture?

Regulatory capture refers to a situation where a regulatory agency, created to act in the public interest, instead advances the commercial or political interests of the sector or industry it's supposed to be regulating. The notion of Wall Street controlling the U.S. Securities and Exchange Commission (SEC) would be an example of such regulatory capture.

What are some examples?

Wall Street and SEC:

1. Jay Clayton: Jay Clayton was the Chairman of the SEC from 2017 to 2020, appointed by President Donald Trump. Prior to his role in the SEC, Clayton was a partner at Sullivan & Cromwell LLP, a prominent law firm in New York that represents many Wall Street firms. After leaving the SEC in December 2020, he returned to Sullivan & Cromwell.

2. Robert Khuzami: Khuzami served as the SEC's Director of the Division of Enforcement from 2009 to 2013. Before his SEC tenure, he worked for Deutsche Bank, one of the world's leading financial services providers. After leaving the SEC, he returned to the private sector, working for Kirkland & Ellis, a law firm known for its corporate law practices, including serving Wall Street firms.

3. Mary Jo White: White served as the Chair of the SEC from 2013 to 2017. Before and after her tenure, she was a partner at the law firm Debevoise & Plimpton, where she led the litigation department. The firm represents many clients from Wall Street.

4. Andrew J. Ceresney: Ceresney served as the Director of Enforcement at the SEC from 2013 to 2016. Like Mary Jo White, before and after his role at the SEC, he was at Debevoise & Plimpton.

Oil, gas, coal and the EPA and BLM:

1. Andrew Wheeler: Before serving as the Administrator of the EPA from 2019 to 2021 under President Donald Trump, Wheeler was a lobbyist whose clients included Murray Energy, one of the largest coal mining companies in the U.S.

2. David Bernhardt: Bernhardt served as Secretary of the Interior (overseeing the BLM) from 2019 to 2021. Prior to his public service, he was a partner at the law firm Brownstein Hyatt Farber Schreck, where he represented oil and gas companies.

3. Scott Pruitt: Pruitt, who served as EPA Administrator from 2017 to 2018, had deep ties to the fossil fuel industry. As Attorney General of Oklahoma, he sued the EPA multiple times on behalf of oil and gas interests.

4. William Perry Pendley: Pendley served as the BLM's acting director for much of the Trump administration. Before that, he was president of the Mountain States Legal Foundation, a conservative group that advocates for property rights and oil and gas development.

Pharma and the CDC:

1. Dr. Julie Gerberding: Dr. Gerberding served as the Director of the CDC from 2002 to 2009. After leaving the CDC, she joined Merck & Co., one of the largest pharmaceutical companies in the world, as president of their vaccine division.

2. Dr. Thomas R. Frieden: Dr. Frieden, CDC Director from 2009 to 2017, went on to form Resolve to Save Lives, an initiative of Vital Strategies. This organization receives significant funding from pharmaceutical companies. While not directly joining a pharmaceutical company, this still highlights the potential for overlap between public health officials and the industry.

3. CDC Foundation: The CDC Foundation, which is the nonprofit arm of the CDC, has received significant funding from pharmaceutical companies, including Pfizer, Johnson & Johnson, and Merck. Some critics argue this funding can influence the CDC's activities and priorities.

4. Advisory Committees: Many individuals who serve on CDC advisory committees maintain financial ties with pharmaceutical companies, either directly or indirectly. These ties can potentially influence the recommendations they make.

Pharma going to the National Institute of Health:

1. Dr. Robert Califf: Before serving as the Commissioner of the Food and Drug Administration (FDA) from 2016 to 2017, Dr. Califf had various consulting roles and received research funding from numerous pharmaceutical companies. While the FDA is not part of the NIH, both agencies play significant roles in U.S. health policy and pharmaceutical regulation.

2. Dr. Francis Collins: Before becoming Director of the NIH in 2009, Dr. Collins had ties to several pharmaceutical and biotech companies. He co-founded a biotech company called Genome Therapeutics Corporation in 1990 and served on its scientific advisory board. He also had ties to Eli Lilly and Company, one of the biggest pharmaceutical companies in the U.S. However, these connections were a few years removed from his appointment, and he has been widely praised for his leadership at the NIH.

3. Dr. Ned Sharpless: Before becoming Director of the National Cancer Institute, part of the NIH, in 2017, Dr. Sharpless co-founded two biotech companies: G1 Therapeutics and HealthSpan Diagnostics. G1 Therapeutics develops small molecule therapeutics for use in oncology.

From NIH to Pharma:

1. Dr. Elias Zerhouni: Dr. Zerhouni served as the NIH Director from 2002 to 2008. After his tenure at the NIH, he joined Sanofi, a multinational pharmaceutical company, as its head of research and development.

2. Dr. Thomas Insel: Dr. Insel led the National Institute of Mental Health, a component of the NIH, from 2002 until 2015. After leaving the NIH, he joined the Google Life Sciences team (now Verily) which is involved in health-related research and is in partnership with several pharmaceutical companies. In 2017, he went on to co-found Mindstrong Health, a healthcare company that utilizes smartphone technology to provide mental health services.

3. Dr. Gary Nabel: Dr. Nabel was a former director of the Vaccine Research Center at the National Institute of Allergy and Infectious Diseases, a part of NIH. He left the NIH in 2012 to become the chief scientific officer at pharmaceutical giant Sanofi.

4. Dr. Christopher Austin: Dr. Austin served as the director of the National Center for Advancing Translational Sciences (NCATS) at the NIH from 2012 to 2020. In 2021, he became the CEO of Flagship Pioneering, a company that founds and develops life science companies. While not a pharmaceutical company per se, Flagship Pioneering is deeply involved in the life sciences and biotech industry.

Pharma to the US Department of Agriculture:

1. Sonny Perdue: George Ervin "Sonny" Perdue III served as the Secretary of Agriculture from 2017 to 2021. Before his political career, Perdue was a veterinarian and owned several agribusinesses, including a fertilizer company and a grain company.

2. Tom Vilsack: Before serving as the Secretary of Agriculture from 2009 to 2017, and again from 2021 onwards, Vilsack worked as a lawyer in cases involving agricultural businesses. After his first tenure as Secretary, he became the CEO of the U.S. Dairy Export Council, which represents dairy producers.

3. Bruce I. Knight: Knight, who served as the USDA Undersecretary for Marketing and Regulatory Programs from 2006 to 2009, grew up on a ranch and has been involved in agribusiness throughout his career. After leaving the USDA, he founded Strategic Conservation Solutions, a consulting firm that works on conservation, agriculture, and environment issues.

4. Bill Northey: Northey, who served as the Under Secretary of Agriculture for Farm Production and Conservation from 2018 to 2021, was a fourth-generation farmer from Iowa. Before his appointment, he served as Iowa's Secretary of Agriculture, a role that involves close ties with the agribusiness industry.

Important note:

Appointments do not inherently represent a problem. Experience in an industry can provide valuable insight and expertise for regulatory roles. However, potential conflicts of interest must be carefully managed to ensure that regulatory decisions are made in the public interest rather than to benefit former or potential future employers.

Let me know what you think!