Breaking news last night was that former Republican senator Dan Coats was considering challenging Indiana Sen. Evan Bayh (D) this year. This morning, the Democratic Senatorial Campaign Committee dropped its first hit on Coats, highlighting his work as a lobbyist.

"Dan Coats is a federally registered lobbyist whose client lists include banks, private equity firms, and defense contractors," said DSCC spokesman Eric Schultz. "Coats is a Washington DC insider who lined his own pockets as taxpayers spent $700 billion bailing out Wall Street banks. Indianans won't ignore Dan Coats' decade as a lobbyist working the system to gain special favors for the banking industry at the time of financial collapse and at the expense of working Americans."

Meanwhile, the man many saw as the GOP's best chance at defeating Bayh -- Rep. Mike Pence (R-Ind.) -- issued a statement of support for Coats this morning.

"I am very excited about the possibility that former Senator Dan Coats may run for the United States Senate in 2010 and I sincerely hope he does it," said Pence. "His integrity and conservative record would make him the ideal candidate for Hoosiers. If he runs, I will support him."

UPDATE (11:45 a.m.): And the first oppo research has come in. Politico's Ben Smith reports Coats has been voting in Virginia for the past decade.