President Barack Obama’s choice for Director of the Central Intelligence Agency, Leon Panetta, received $700,000 in speaking and consulting fees in 2008 alone. A significant portion of that money came from banks that the federal government would end up having to bailout at taxpayer expense.

Mr. Panetta received $56,000 from Merrill Lynch & Co. for two speeches and $28,000 for a speech for Wachovia Corp., according to disclosures released ahead of Thursday’s scheduled Senate hearing on Mr. Panetta’s nomination.

Both Merrill and Wachovia reported big losses last year and were acquired by larger firms. The Wachovia honorarium was dated Oct. 30, and the last Merrill Lynch honorarium was dated Oct. 11, according to disclosure forms filed by Mr. Panetta in connection with his nomination. At the time, Bank of America had agreed to a rescue of Merrill Lynch; Wachovia had agreed to be acquired by Wells Fargo & Co…

The former White House chief of staff’s disclosure form also shows the delicate balance President Barack Obama is trying to strike — trying to curb the influence of lobbyists, while relying on Washington veterans who often help clients navigate the halls of power. Mr. Panetta’s forms show that he performed government affairs consulting last year and also sat on the board of a public affairs firm that lobbies Congress. Like Mr. Daschle, who also worked for a firm with lobbying clients, Mr. Panetta doesn’t violate Mr. Obama’s ban on hiring registered lobbyists.

Did I mention that Panetta received large sums of money from firms that deal with national security and anti-terrorism measures? Yeah, one of them holds a majority stake in a company that works with with the CIA.

Mr. Panetta also received a $28,000 honorarium from the Carlyle Group, a private-equity firm that owns companies doing business with national-security agencies of the U.S. government. Carlyle holds a majority stake in the government consulting arm of Booz Allen Hamilton Inc., which works for the CIA and other agencies. A Carlyle spokesman said Mr. Panetta was paid to speak at an investor conference and that the matter was unrelated to Booz Allen or any other defense contractors.

Mr. Panetta also reported receiving a $60,000 “Governmental Advisor Fee” from the Pacific Maritime Association, which represents the shipping industry. The group lobbies the federal government regarding terrorism laws that affect shipping. A spokesman for the association didn’t respond to a request for comment.

Considering the pattern emerging with Barack Obama’s nominees, one can be excused for wondering if Mr. Panetta managed to pay all of the taxes the law requires. If so, and there’s no indication that he hasn’t, at least we’re making progress. Baby steps.

More: Don Surber, JustOneMinute, FloppingAces.