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So, who's next? 
WASHINGTON -(Dow Jones)- Mississippi Sen. Trent Lott's decision to retire from the U.S. Senate by year's end shocked Washington Monday, catching lawmakers and lobbyists alike off guard.
The departure of the pro-business, conservative Republican, who as minority whip was the No. 2 GOP senator, also sent the clearest signal yet that Republicans could be in serious trouble in the 2008 election.
The 66-year-old Lott announced he was stepping down at a press conference in his hometown of Pascagoula.
Lott's sudden retirement only a year into his current six-year term - he was handily reelected in 2006 - wasn't expected. Grover Norquist, president of Americans for Tax Reform, said he was "surprised" to hear the news.
That feeling was shared by many in the business community, who have lauded Lott's support for the Bush administration's tax cuts and his record for voting for business-friendly legislation.
"What a bombshell, I don't think anyone saw this coming," said one insurance industry lobbyist.
Prof. Richard Forgette, chairman of the University of Mississippi's political science department, described Lott as an "institution that has served Mississippi well." Along with Sen. Thad Cochran - the state's other Republican senator - "we had one of the most powerful delegations in the Senate," Forgette said.
Known as a savvy dealmaker and expert legislator, Lott has used his influence as a member of the GOP leadership and as a top member of the Senate Finance Committee to broadly promote pro-business legislation.
Iowa Sen. Charles Grassley, the top Republican on the finance panel, said it was hard to imagine Lott not being in the Senate. Grassley described Lott as a champion of legislation "that respects the principles of less government and more freedom."
The U.S. Chamber of Commerce gave Lott ratings of 100%, 100% and 92% from 2004 to 2006 on his votes for major pieces of business-friendly legislation. Likewise, Norquist's group - which opposes all tax increases - gave Lott a 90% rating on his votes for tax-related legislation in 2005 and 2006.
"Lott was a solid vote on taxes, he was a team player," said Norquist, who praised Lott's 34-year tenure in both the U.S. House and Senate.
Lott's departure does bode well for at least one industry: property and casualty insurers.
Lott has been a vocal critic of companies like Allstate Corp. (ALL) and State Farm for what he sees as industry negligence in the wake of Hurricane Katrina.
As recently as October, Lott said in an interview with Dow Jones Newswires that "we're going to nail them" when referring to the industry.
"The last day I'm in Congress and the last day I'm alive I will continue to pressure them," he said in that interview.
Lott had created a number of headaches for insurers this year, going so far as to threaten a limited anti-trust exemption enjoyed by the industry.
Despite their disagreements with Lott, reaction from insurance industry groups was generally muted.
"While we have disagreed with the senator's views of our industry, with today's news we offer our best wishes in his future endeavors," said Charles M. Chamness, president and CEO of the National Association of Mutual Insurance Companies.
Cliston Brown, spokesman with the Property Casualty Insurers Association of America, offered a similar perspective.
"As we have seen, he could be either a great ally or a strong adversary, but whether you agreed or disagreed with him on an issue you always knew he had tremendous ability to persuade his colleagues," Brown said.
Lott didn't go into detail about his decision, but Norquist said the timing appeared to be right for such a move. Mississippi Gov. Haley Barbour, a Republican, was re-elected this month, and Cochran recently tamped down speculation that he would retire by announcing he would run for re-election in 2008.
By retiring now, Norquist said, it allows Barbour to appoint a Republican who shares Lott's ideals to take his place.
"He will clearly replace himself with someone who shares his worldview," Norquist said. "Because he's structured replacing himself it's another feather in his cap."
The person chosen by Barbour to replace Lott would face a special election by Mississippi voters that would likely coincide with next November's general election.
Lott's decision was likely influenced by the fact Democrats are widely expected to increase their majorities in both the House and Senate in 2008. Larry Sabato, director of the University of Virginia Center for Politics, said he expects Republicans to lose at least three seats in the Senate, which would make Lott's job as minority whip all the more difficult.
"You can see why he wants to call it quits. It's not a pleasant proposition," Sabato said, adding that he was "surprised but not shocked" by Lott's announcement.
WASHINGTON -(Dow Jones)- Mississippi Sen. Trent Lott's decision to retire from the U.S. Senate by year's end shocked Washington Monday, catching lawmakers and lobbyists alike off guard.
The departure of the pro-business, conservative Republican, who as minority whip was the No. 2 GOP senator, also sent the clearest signal yet that Republicans could be in serious trouble in the 2008 election.
The 66-year-old Lott announced he was stepping down at a press conference in his hometown of Pascagoula.
Lott's sudden retirement only a year into his current six-year term - he was handily reelected in 2006 - wasn't expected. Grover Norquist, president of Americans for Tax Reform, said he was "surprised" to hear the news.
That feeling was shared by many in the business community, who have lauded Lott's support for the Bush administration's tax cuts and his record for voting for business-friendly legislation.
"What a bombshell, I don't think anyone saw this coming," said one insurance industry lobbyist.
Prof. Richard Forgette, chairman of the University of Mississippi's political science department, described Lott as an "institution that has served Mississippi well." Along with Sen. Thad Cochran - the state's other Republican senator - "we had one of the most powerful delegations in the Senate," Forgette said.
Known as a savvy dealmaker and expert legislator, Lott has used his influence as a member of the GOP leadership and as a top member of the Senate Finance Committee to broadly promote pro-business legislation.
Iowa Sen. Charles Grassley, the top Republican on the finance panel, said it was hard to imagine Lott not being in the Senate. Grassley described Lott as a champion of legislation "that respects the principles of less government and more freedom."
The U.S. Chamber of Commerce gave Lott ratings of 100%, 100% and 92% from 2004 to 2006 on his votes for major pieces of business-friendly legislation. Likewise, Norquist's group - which opposes all tax increases - gave Lott a 90% rating on his votes for tax-related legislation in 2005 and 2006.
"Lott was a solid vote on taxes, he was a team player," said Norquist, who praised Lott's 34-year tenure in both the U.S. House and Senate.
Lott's departure does bode well for at least one industry: property and casualty insurers.
Lott has been a vocal critic of companies like Allstate Corp. (ALL) and State Farm for what he sees as industry negligence in the wake of Hurricane Katrina.
As recently as October, Lott said in an interview with Dow Jones Newswires that "we're going to nail them" when referring to the industry.
"The last day I'm in Congress and the last day I'm alive I will continue to pressure them," he said in that interview.
Lott had created a number of headaches for insurers this year, going so far as to threaten a limited anti-trust exemption enjoyed by the industry.
Despite their disagreements with Lott, reaction from insurance industry groups was generally muted.
"While we have disagreed with the senator's views of our industry, with today's news we offer our best wishes in his future endeavors," said Charles M. Chamness, president and CEO of the National Association of Mutual Insurance Companies.
Cliston Brown, spokesman with the Property Casualty Insurers Association of America, offered a similar perspective.
"As we have seen, he could be either a great ally or a strong adversary, but whether you agreed or disagreed with him on an issue you always knew he had tremendous ability to persuade his colleagues," Brown said.
Lott didn't go into detail about his decision, but Norquist said the timing appeared to be right for such a move. Mississippi Gov. Haley Barbour, a Republican, was re-elected this month, and Cochran recently tamped down speculation that he would retire by announcing he would run for re-election in 2008.
By retiring now, Norquist said, it allows Barbour to appoint a Republican who shares Lott's ideals to take his place.
"He will clearly replace himself with someone who shares his worldview," Norquist said. "Because he's structured replacing himself it's another feather in his cap."
The person chosen by Barbour to replace Lott would face a special election by Mississippi voters that would likely coincide with next November's general election.
Lott's decision was likely influenced by the fact Democrats are widely expected to increase their majorities in both the House and Senate in 2008. Larry Sabato, director of the University of Virginia Center for Politics, said he expects Republicans to lose at least three seats in the Senate, which would make Lott's job as minority whip all the more difficult.
"You can see why he wants to call it quits. It's not a pleasant proposition," Sabato said, adding that he was "surprised but not shocked" by Lott's announcement.
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