Category: Corruption

CalPERS Blinks

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After an increasing chorus of criticism the largest pension fund in the nation, CalPERS, has abandoned its plans to relax standards in order to favor private equity:

The state’s biggest public pension fund has repeatedly missed a key performance goal for its controversial private equity investments.

But a CalPERS committee said Monday that the fund’s staff could not strip language from a written policy that required them to aim to meet that benchmark – returns roughly 3% higher than the stock market to compensate for private equity’s risk.

By voice vote, the committee defeated the proposal to change the policy so that the new objective would have been simply “to enhance” the pension fund’s private equity returns.

………

The suggested policy change had been criticized by financial experts who said it would clear the way for CalPERS to continue to invest in the complex Wall Street sector – the buying and selling of companies — without requiring higher returns to compensate for the added risk.

“This is outrageous,” Eileen Appelbaum, a senior economist at the Center for Economic and Policy Research, a Washington think tank, said before the meeting. “CalPERS can’t get over the goal, now plans to do away with goal post.”

………

The proposed policy change came after many years where CalPERS failed to meet the so-called “risk-adjusted” benchmark.

For the year ended June 30, for instance, private equity earned a seemingly healthy 8.9%, but that was lower than the 11.1% goal.

A recent report by a CalPERS’ consultant acknowledged that the private equity investments had also failed to beat benchmarks over the last three, five and 10 years.

Appelbaum said that CalPERS would have made the same amount over the last 10 years if it would have just invested in the stock market – but without the added risks or high fees.

(emphasis mine)

I would note that the abuse of private equity by CalPers, and the increasing furor over its backflips to favor private equity is a direct result of the investigations, and aggressive use of freedom of information act requests, by Yves Smith and the Naked Capitalism team, who have been on this like white on rice.

One think that I have not figured out yet is why CalPERS has been so insistent in pursuing a failed strategy.

The cynic in me assumes that there is some sort of corruption involved.

The realist sees this being driven by blind panic as a historically underfunded institution flails around searching for a magic bullet.

I’m not sure which analysis frightens me more.

MERS is In the News Again.

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I am referring to the Mortgage Electronic Registration Systems, not Middle East Respiratory Syndrome.

To refresh your memory, it is an electronic registry created by the big banks.

They created it to evade registry fees when they sliced and diced mortgages, and sold them to greater fools.

Additionally, it creates a shell game where all sorts of skulduggery is hidden in a labyrinth of obfuscation.

The banks, and MERS, have claimed that it does, and does not, own the mortgage, and now the Tennessee Supreme Court has ruled that they have no property interests in the mortgages that they transfer:

Chattanooga, Tennessee — The Chattanoogan.com news site is reporting that in a lawsuit filed to set aside a tax sale of mortgaged land in Hamilton County, the Tennessee Supreme Court has held that Mortgage Electronic Registration Systems, Inc. was not entitled to prior notice of the sale because MERS did not have an interest in the land that is protected under the Due Process Clause of the U.S. Constitution!

READ THE OPINION HERE: MERS v DITTO_TN Supreme Court rules against MERS! The Tennessee Supreme Court is the first to rule in such a manner!

The site is reporting that the purchaser of the Hamilton County land borrowed money from a MERS member lender, signing a promissory note secured by the property by a deed of trust, which was recorded in the Hamilton County Register of Deeds office. The deed of trust described MERS as “a separate corporation that is acting solely as nominee for [the lender]” and said that MERS was the beneficiary of the deed of trust “solely as nominee” for the lender and any successor to the lender. As is customary in the MERS® System, the originating lender sold the note to another lender. Subsequent to that, the property owners failed to pay their 2006 property taxes, so Hamilton County initiated tax foreclosure proceedings.

The county sent notice of the foreclosure and the tax sale to the borrowers and to the original lender, but not to MERS. Eventually, the property was sold at a tax sale to Carlton Ditto. Just like in the Cabrera, Robinson and Johnston cases in California, after learning of the action, MERS filed a lawsuit to set aside the tax sale, naming Hamilton County and Mr. Ditto as defendants. MERS argued that Hamilton County violated its constitutional right to due process of law by selling the land without notifying MERS. This crap is the same argument propounded in the California cases, where MERS claimed that the deed of trust gave MERS its own independent interest in the Hamilton County property, so it was constitutionally entitled to prior notice of the tax sale. In California, MERS also wanted the courts to rule that the California Quiet Title Statutes were unconstitutional and that the judges who rendered the quiet title judgments in all three cases were civil co-conspirators, something this blogger has learned has infuriated the state judges! (I sure hope MERS doesn’t show up in front of one of them any time soon! LOL)

………

The Supreme Court considered whether Hamilton County was required to give MERS prior notice of the tax sale. The Court recognized that the Due Process Clause of the U.S. Constitution generally applies when the government sells a taxpayer’s land to satisfy unpaid taxes, so if the government fails to give the taxpayer such notice, the sale is unconstitutional and void. The Court then considered whether MERS had an interest in the land that was protected under the Constitution. The Court first noted that the deed of trust for the Hamilton County transaction used contradictory language to describe the role of MERS in the property loan transaction; it described MERS as a “beneficiary” but also said that MERS acted “solely as nominee” for the lender. Considering the parties’ roles in the loan transaction, the Court also held that MERS was not in fact a beneficiary but only an agent for the true beneficiary, the note holder, and that MERS acquired no independent interest in the Hamilton County land. Because MERS did not have an interest that was constitutionally protected, Hamilton County was not required to give MERS notice before it sold the land to pay the unpaid tax obligation. For this reason, the Supreme Court affirmed the trial court’s judgment in favor of Hamilton County and the tax sale purchaser, Mr. Ditto.

………

From gandering at the opinion issued by the Court, it appears they quoted MERS’s own counsel on company policies! Many attorneys have told me, as have certain legislators in DC, that just because MERS has a “business model” doesn’t mean: (1) it’s perfectly okay to rip off 3,007 counties across America in denying fees while obfuscating the real parties in interest from the borrowers; and (2) it should be accorded the same interests as the Lender, especially when the Lender doesn’t have a recorded (perfected) interest that still could be challenged.

(emphasis original)

Mortgage and property law has developed over hundreds of years through trial and error.

This process was pushed along by the very real need for property owners, lenders, and local governments to have certainty and protections on a process that would otherwise be rife with criminality and risk.

MERS was developed to short circuit that process, and it’s nice that some courts are recognizing that just because someone in Wall Street comes up with a way to make money, it doesn’t mean that it is legal.

FYI, you can also read a somewhat more sedate account of these cases, you can go here.

It’s Back

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After having their plans to thwarted by activists, CISA is back:

US librarians have joined with a host of civil liberties groups to condemn a cybersecurity bill now passing through Congress they claim will be both “unhelpful” and “dangerous to Americans’ civil liberties”.

The American Library Association, the world’s oldest and largest library affiliation, has joined with 18 other groups including Fight for the Future, Demand Progress and FreedomWorks to issue a letter to the White House and Congress urging lawmakers to oppose the final version of a bill they claim will dramatically expand government surveillance while failing to tackle cyber-attacks.

Politicians from both sides of the House have been pushing for stronger cybersecurity measures in the wake of the Paris attacks and the recent San Bernardino shooting.

Republican House speaker Paul Ryan has been leading the charge to push through legislation and reconcile two bills, the Protecting Cyber Networks Act (PCNA) and the National Cybersecurity Protection Advancement with the Cybersecurity Information Sharing Act of 2015 (Cisa), a controversial bill that passed a Senate vote in October.

The speed with which Ryan is trying to push through a compromise has worried privacy activists. “We’ve just learned that the Intelligence Committees are trying to pull a fast one,” Nathan White, senior legislative manager at digital rights advocate Access, said in a recent email to supporters. “They’ve been negotiating in secret and came up with a Frankenstein bill – that has some of the worst parts from both the House and the Senate versions.”

  • According to the letter’s signatories, the proposed “conference” legislation would:
  • Create a loophole that would allow the president to remove the Department of Homeland Security, a civilian agency, as the lead government entity managing information sharing.
  • Reduce privacy protections for Americans’ personal information.
  • Overexpand the term “cyber threat” to facilitate the prosecution of crimes unrelated to cybersecurity.
  • Expand already broad liability protection for information disclosure.
  • Pre-empt state, local or tribal disclosure laws on any cyber-threat information shared by or with a state, tribal or local government.
  • Eliminate a directive to ensure data integrity.

They are going to keep trying until we put a stake through the heart of the surveillance industrial complex.

Nice Work if You Can Get It

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The lobbying operation Purple Strategies is lobbying for the NRA and for the gun control advocacy group Everytown for Gun Safety:

The growing frequency of mass shootings has done little to change the political stalemate over guns in Washington, with gun rights and gun control groups each declaring that the latest massacre — for now, the one in San Bernardino — supports their diametrically opposed arguments.

In this environment, no one can predict the future of gun policy in America. But at least one thing is certain: The team of political consultants at Purple Strategies will get paid.

The partners at Purple Strategies — a bipartisan lobbying firm and consulting agency formed in 2008 through a merger of Issue & Image, a Democratic-led company, and National Media, a Republican campaign firm — have developed business relationships on both sides of the gun control debate, working with both the National Rifle Association and Everytown for Gun Safety, the umbrella organization for pro-gun control advocacy groups.

Everytown did not respond to multiple requests for comment. Officials from the NRA declined to provide a comment for this article — although they did ask us for more information about Everytown’s ties to Purple Strategies.

A spokesperson for Purple Strategies denied that the firm has relationships on both sides of the gun policy debate.

………

We had asked Morgante to describe what appeared to be a close relationship between Purple and National Media, Red Eagle Media Group, and the American Media & Advocacy Group, all of which had done work for the NRA.

“The founding partners of Issue & Image and National Media Public Affairs founded Purple, however, Purple Strategies operates independently and does not share clients or employees with any other company that you referenced,” Morgante wrote.

Notwithstanding Morgante’s claims, however, documents and business filings reviewed by The Intercept show considerable overlap between National Media and Purple Strategies when it comes to clients, staff, office space, and leadership.

Consider how this works for gun-related clients:

Everytown and Mayors Against Illegal Guns, two groups heavily funded by billionaire Michael Bloomberg to enact gun restrictions, have relied on Purple Strategies’ Margie Omera and her firm, Momentum Analysis, for multiple polling services in 2014 and this year. Momentum Analysis was acquired by Purple Strategies in 2013. In a memo to Everytown, Omera identified herself as working for Purple Insights, “the in-house opinion research group at Purple Strategies.”

The NRA’s relationship with Purple and National Media is obscured through a network of affiliate companies. But documents filed with the Federal Communications Commission show that the NRA regularly buys political advertising through American Media & Advocacy Group and Red Eagle Media, two firms that share an address in Alexandria, Virginia, with Purple Strategies and National Media.

Records maintained by the Alexandria Circuit Court reveal that Red Eagle Media is an “assumed or fictitious” business created and owned by National Media. Robin Roberts, a co-founding partner of Purple Strategies and the president of National Media, registered the name.

They are laughing their way to the bank.

Sharia Law in Murfreesboro, Tennessee

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It looks like the religious nut-jobs in the Murfreesboro district attorney’s office have turned a personal tragedy into an The Handmaiden’s Tale by charging a woman who attempted to abort her fetus with first degree murder:

A woman who attempted to perform an abortion with a coat hanger six months into her pregnancy has been indicted on a first-degree attempted murder charge, Murfreesboro Police reported.

Anna Yocca, 31, of 1939 Swindon Circle, was arrested Wednesday at Juvenile Court by Detective Tommy Roberts after the December session of the Rutherford County grand jury issued an indictment on the charge, according to the report. An employee at the Amazon fulfillment center in Lebanon, she was booked into jail on a $200,000 bond.

Roberts began investigating the case in September when evidence showed Yocca went to her upstairs bathroom, filled the tub with water, got in and tried to “self-abort” her pregnancy using a coat hanger, the report shows.

She became “alarmed and concerned for her safety” when she saw a great deal of blood in the tub, and her boyfriend took her to St. Thomas Rutherford Hospital emergency room. From there, she was transported to St. Thomas Mid-Town in Nashville where staff members saved “Baby Yocca,” the report shows.

This is the world that anti-abortion forces want.

We’ve already seen a woman jailed to compel her to carry her fetus to term, a woman charged with murder for taking an abortion drug, prosecuting a mother for helping her daughter obtain an abortion, and passing laws making some miscarriages murder, among other cases in the past few years.

These folks won’t be satisfied until every woman in America is back in chains.

(on edit)

The irony here is that a few years back, Murfreesboro was trying to prevent a mosque from being built in the area.

Taliban, Talibaptist, there is no difference.

Nope, No Appearance of Corruption Here

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The New York Times has revealed the connections between Joe Biden’s lobbyist son, Hunter, and a Ukrainian oligarch:

When Vice President Joseph R. Biden Jr. traveled to Kiev , Ukraine, on Sunday for a series of meetings with the country’s leaders, one of the issues on his agenda was to encourage a more aggressive fight against Ukraine’s rampant corruption and stronger efforts to rein in the power of its oligarchs.

But the credibility of the vice president’s anticorruption message may have been undermined by the association of his son, Hunter Biden, with one of Ukraine’s largest natural gas companies, Burisma Holdings, and with its owner, Mykola Zlochevsky, who was Ukraine’s ecology minister under former President Viktor F. Yanukovych before he was forced into exile.

Hunter Biden, 45, a former Washington lobbyist, joined the Burisma board in April 2014. That month, as part of an investigation into money laundering, British officials froze London bank accounts containing $23 million that allegedly belonged to Mr. Zlochevsky.

Britain’s Serious Fraud Office, an independent government agency, specifically forbade Mr. Zlochevksy, as well as Burisma Holdings, the company’s chief legal officer and another company owned by Mr. Zlochevsky, to have any access to the accounts.

But after Ukrainian prosecutors refused to provide documents needed in the investigation, a British court in January ordered the Serious Fraud Office to unfreeze the assets. The refusal by the Ukrainian prosecutor general’s office to cooperate was the target of a stinging attack by the American ambassador to Ukraine, Geoffrey R. Pyatt, who called out Burisma’s owner by name in a speech in September.

………

But Edward C. Chow, who follows Ukrainian policy at the Center for Strategic and International Studies, said the involvement of the vice president’s son with Mr. Zlochevsky’s firm undermined the Obama administration’s anticorruption message in Ukraine.

“Now you look at the Hunter Biden situation, and on the one hand you can credit the father for sending the anticorruption message,” Mr. Chow said. “But I think unfortunately it sends the message that a lot of foreign countries want to believe about America, that we are hypocritical about these issues.”

………

Ms. Bedingfield said Hunter Biden had never traveled to Ukraine with his father. She also said that Ukrainian officials had never mentioned Hunter Biden’s role with Burisma to the vice president during any of his visits.

“I’ve got to believe that somebody in the vice president’s office has done some due diligence on this,” said Steven Pifer, who was the American ambassador to Ukraine from 1998 to 2000. “I should say that I hope that has happened. I would hope that they have done some kind of check, because I think the vice president has done a very good job of sending the anticorruption message in Ukraine, and you would hate to see something like this undercut that message.”

And people wonder why our heartfelt appeals to end corruption in foreign governments are not well received.

Drip, Drip, Drip………

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And now the second of Albany’s “3 Men in a Room” has been convicted of corruption:

Dean G. Skelos, the former majority leader of the New York Senate, and his son were found guilty of federal corruption charges on Friday, a quick and devastating follow-up punch to the State Capitol, which has seen two entrenched leaders convicted and removed from office in less than two weeks.

The jury in Federal District Court in Manhattan took roughly eight hours over two days to reach its verdict against Senator Skelos, 67, and his son, Adam B. Skelos, 33, finding them guilty of all eight bribery, extortion and conspiracy counts.

The Skeloses were undone by the perversion of a simple fatherly impulse: There was little that the elder Skelos would not do, or ask, for his son. They used the father’s position as majority leader to pressure a Manhattan developer, an environmental technology company and a medical malpractice insurer to provide Adam Skelos with roughly $300,000 via consulting work, a no-show job and a direct payment of $20,000.

Dean Skelos, a Republican from Long Island, had been one of the most powerful men in state government until his arrest this year, and his conviction — along with the conviction of his former colleague, the longtime Assembly speaker, Sheldon Silver, a Manhattan Democrat — is sure to have repercussions beyond the courtroom. As in Mr. Silver’s case, which ended on Nov. 30, the verdict resulted in Mr. Skelos’s expulsion from the State Legislature, where both men had served for more than three decades.

I cannot imagine that UU Attorney Preet Bharara does not his sights on the Governor’s office after all of this.

And I Sit in Front of My Monitor, Looking lIke a Cow That Just Stepped on Its Own Udder

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I’ve just discovered that, among the international sports federations, the world Soccer organization FIFA is the 2nd Least corrupt:

A study conducted by Play the Game/Danish Institute for Sports Studies, and published in October 2015, found that on the basic criterion of good governance, Fifa ranks second among the 35 Olympic international sports federations with a Sports Governance Observance index of 67.8 percent.

Yes, the same Fifa that was raided by the police for the second time on Wednesday, resulting in more arrests of its officials. The same Fifa against whose officials US government officials revealed a new indictment that alleges “an even more extensive network of criminal behaviour across dozens of countries and that involved some of the most powerful people in international soccer,” according to The New York Times.

What the f%$#ing f%$3?

We are living in Bizarro world.

H/t Naked Capitalism. 

Maybe He Will Go to Jail After All

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It looks like Andrew Cuomo got a $700,000.00 advance from a subsidiary of News Corp, and then they got a multi-million dollar subsidy:

New York’s state government has committed millions of dollars in taxpayer support to News Corporation for a real estate deal — less than three years after a subsidiary of that company gave New York Gov. Andrew Cuomo a book deal worth up to $700,000. The commitment was disclosed in documents released by the Port Authority — an agency jointly controlled by Cuomo and New Jersey Republican Gov. Chris Christie.

The documents say the Port Authority, News Corporation and 21st Century Fox “have received commitments from New York State” for a “one-time payment of $15 million in 2016 and the utilization of a $15 million” state tax credit as part of the agency’s push to make the companies “anchor tenants” for 2 World Trade Center. The documents say the transactions are part of an initiative to reduce News Corporation’s and 21st Century Fox’s rent payments at the new building by $155 million.

The Cuomo-appointed executive director of the Port Authority, Patrick Foye, told International Business Times Wednesday night that he is recommending that the Port Authority’s board approve the package because, he said, the agency will get significant bang for its buck. “That is objectively a good deal, a good transaction for the Port Authority and the region,” he said.

This is not a surprise.

Murdoch has a long history of using political connections for business advantage, and Andrew Cuomo swims in the sea of corruption that is Albany like a fish.

Quote of the Day

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Here’s what U.S. state and city pension funds are getting this year for the hundreds of millions of dollars in fees they’re forking over to hedge funds: almost nothing.

—Bloomberg Business

Private equity and hedge funds have earned lots of money capitalizing on the panic of underfunded public pensions seeking higher returns to deal with chronic under-funding.

There have been no higher returns, but Wall Street has gotten its vig, some of which, of course, gets recycled back to the campaign funds of politicians who might otherwise provide oversight of the pension funds.

As Yves Smith is wont to say, It’s a, “Self licking ice cream cone.”

Sucks to be Rahm Now

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First, it now appears that the DoJ will start an investigation of the Chicago Police Department:

The Justice Department plans to launch an investigation into the patterns and practices of the Chicago Police Department, a wide-ranging review similar to those that scrutinized the police departments in Ferguson, Mo., and Baltimore, according to several law enforcement officials.

 The civil probe, which the officials say could be announced early this week, comes as Chicago continues to grapple with protests after the release of a video showing the police shooting of Laquan McDonald, which prompted murder charges for the officer involved and the resignation of the city’s police chief. The Justice Department is already investigating the McDonald shooting, but this new investigation by the department’s civil rights division would focus on the police department’s practices broadly to determine whether any of them contribute to civil rights violations.

 ………

 Mayor Rahm Emanuel (D), a former top aide to President Obama, called the possibility of a civil rights investigation “misguided” last week. But, a day later, he reversed course and said he would welcome such an investigation.

 Emanuel has come under fire for his administration’s handling of the McDonald video, specifically for fighting its release for more than a year, which some have suggested was a politically motivated decision meant to insulate the mayor from political backlash while he was locked in a tight reelection effort. One week after the McDonald video was released, Emanuel fired Police Superintendent Garry F. McCarthy.

 ………

 On the same day that McCarthy was fired, Illinois Attorney General Lisa Madigan wrote a letter to the DOJ urging them to open an investigation into the police department.

 “The McDonald shooting is shocking, and it highlights serious questions about the historic, systemic use of unlawful and excessive force by Chicago police officers and the lack of accountability for such abuse by CPD,” Madigan (D) wrote.

 Under Obama, Attorneys General Loretta Lynch and her predecessor, Eric Holder, have used patterns-and-practices investigations to aggressively probe police departments for potential constitutional violations, investigating dozens of departments since 2009. Those probes have found patterns of excessive force by police in Cleveland; Albuquerque; the Los Angeles County Sheriff’s Department; Portland; New Orleans; Seattle; Puerto Rico; and Warren, Ohio.

And on the civil/press end, a federal judge just forbade the CPD from destroying old misconduct investigations:

Chicago authorities must notify journalists and activists before they destroy decades of records related to police misconduct, Illinois Circuit Court Judge Peter Flynn ruled in an emergency order Thursday.

The order comes after journalist and activist Jamie Kalven petitioned the court after police officials said they would destroy hundreds of thousands of pages of evidence, investigative files and computer records related to Chicago police officer misconduct reports older than four years.

The documents are among a trove of data requested by Kalven and other media organizations, including the Chicago Tribune and Sun-Times, dating back to 1967. Last year, city officials agreed to release all of the police misconduct information, but the city’s police unions sued to prevent the documents from becoming public and the issue remains in limbo. The case will eventually be decided by an Illinois appeals court.

The emergency order comes in the wake of a large public outcry following the release of the video that shows police officer James Van Dyke shooting 17-year-old Laquan McDonald 16 times in October 2014. Van Dyke was charged with first-degree murder hours before the video’s release.

Kalven and his attorney, Craig Futterman, a University of Chicago law professor, played a critical role in the release of the dash-cam footage by reporting on the video’s existence and demanding that officials release it. Kalven expressed relief at the judge’s order, saying it would give him time to go back to court before authorities could set a “bonfire” to decades’ worth of key information about police misconduct in Chicago. “Ministers, civic groups … are all calling for a full examination of the systems of accountability in the city.”

………

“So while we’re having this conversation about openness, honesty, transparency, distrust and lack of accountability, the destruction of these records would ensure impunity for officers who have engaged in abuse,” Futterman said. “I can’t imagine a worse time than this.”

I rather expect to see a whole lot of Freedom of Information Act requests to follow.

It also just blows my mind that the CPD unions have the right to demand the destruction of records. I would think that this decision would be exclusively the purview of management, and in any case, state and federal law would render that portion of the contract unforceable.

In either case, I expect to see a constant drip ……… drip ……… drip, of revelations, and even if they predate Rahm Emanuel’s tenure as mayor, he will take the heat.

I’m hoping that he is frog marched out the mayor’s offices in handcuffs, but if it merely leads to his being toxic in the context of Democratic politics, Dayenu.

I’m Wondering if Andrew Cuomo is Next on Preet Bharara’s Hit Parade

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The New York Post Has Great Headlines

The former speaker of the New York State Assembly, Sheldon Silver, has been convicted on all corruption counts:

Sheldon Silver, who held a seemingly intractable grip on power for decades as one of the most feared politicians in New York State, was found guilty on Monday of federal corruption charges, ending a trial that was the capstone of the government’s efforts to expose the seamy culture of influence-peddling in Albany.

 The verdict was a quick and unceremonious end for Mr. Silver, who, during his more than two decades as the State Assembly speaker, displayed a Teflon-like quality in deflecting questions about his outside income as well as calls for his ouster.

 Mr. Silver, 71, a Manhattan Democrat, was convicted on all seven counts against him. The charges of honest services fraud, extortion and money laundering stemmed from schemes by which he obtained nearly $4 million in exchange for using his position to help benefit a cancer researcher and two real estate developers.

 The son of a hardware store owner on the Lower East Side, Mr. Silver was known as a poker-faced negotiator who often got his way during budget negotiations, sometimes by simply holding out the longest. At the same time, he was also a fierce defender of New York City in the state Capitol.

 As a result of the conviction, he must automatically forfeit the Assembly seat to which he was first elected nearly 40 years ago.

 The verdict came on the jury’s third day of deliberations, after a five-week trial in Federal District Court in Manhattan. When word came that a verdict had been reached, Mr. Silver fidgeted in his chair, clenched his jaw, shook his head, sighed and glanced toward Preet Bharara, the United States attorney for the Southern District of New York, who had taken a seat at the rear of the courtroom just before the verdict was read.

 ………

 Mr. Silver is the most prominent in a parade of state lawmakers who have been convicted by Mr. Bharara’s office. Mr. Silver’s former counterpart, State Senator Dean G. Skelos, a Republican from Long Island who served as Senate majority leader, is also being tried on federal corruption charges; his case, which also includes Mr. Skelos’s son, Adam, entered its third week on Monday.

In response to this, Andrew Cuomo has dismissed any idea of a special session to address ethics in New York State government:

Governor Cuomo, spoke publicly for the first time since the former leader of the Assembly was convicted on seven counts of corruption, for abusing his powers to earn outside income. But Cuomo says he does not think it’s the right time now for a special session on ethics reform.

 Reform groups have called for a special session to fix corruption at the Capitol, but Governor Cuomo says it’s too close to Hanukkah and Christmas now to hold one.

 “I don’t think a special session is practical, we’re coming into the holiday season,” said Cuomo, who said reform will be “on the agenda” in Januarys, when the new session begins.

 December sessions have been held several times in the past, as recently as 2011, when Cuomo and the legislature met to extend extra  income taxes on the wealthy.

This is not surprising, Silver, Skelos, and Cuomo were the infamous, “Three Men in a Room,” who would sit down and hash out pretty much everything in state politics.

I don’t think that Cuomo is particularly interested in ethics reform right now.

First, he has a new set of leaders in the State House and Senate to learn how to deal with.

Second, he still wants the money from the firm implicated in both the Silver and Skelos trials, Glenwood Management:

Gov. Andrew Cuomo isn’t ready to turn away donations from his most generous political donor simply because the firm plays a prominent role in the corruption trials of former Assembly Speaker Sheldon Silver and Senate Leader Dean Skelos.

 During a Q&A at the Javits Center on Monday, Cuomo was asked specifically if he would continue taking campaign contributions from the real estate giant Glenwood Management after the trials’ revelation about its political giving and the personal income that ended up in the pockets of Skelos’ son, Adam, and Silver.

 Cuomo gave a curious answer: “Let’s see what happens with the trial,” he said. “Let’s see what the outcome is. If someone is convicted of a crime, then obviously not.”

 If Cuomo was referring to Glenwood, his campaign has nothing to worry about so far: While the verdicts on Silver and Skelos are up to their respective juries, Glenwood and its employees and lobbyists have not been charged with any crimes. However, several people in its employ or professional orbit — including its Senior Vice President Charles Dorego and its lobbyist Brian Meara — have received non-prosecution agreements in exchange for their cooperation with U.S. Attorney Preet Bharara.

And finally, we have reports that Bharara has Cuomo firmly in his sights, and a such, I am sure that he does not want to spend political capital on ethics reform right now:

United States Attorney Preet Bharara feels emboldened, sources say, following the conviction of former Assembly Speaker Sheldon Silver — on all of seven corruption charges. Despite lacking a “smoking gun” to constitute an explicit quid pro quo, the jury handed Bharara a sweeping win. Such is the public’s appetite for corrupt politicians, observers say.

Three sources are confirming that Bharara intends to indict Governor Andrew Cuomo on January 2nd — along with a half dozen associates and former staffers — on public corruption, racketeering, conspiracy, and honest services fraud.

If this is true, I will be very amused, but my guess is that while some of Cuomo’s aides may end up in the dock, that he has created enough space between himself and their acts to avoid legal liability.

Rats Turning on Each Other

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Rats

Following the release of dashcam footage of  the shooting of Laquan McDonald, which took a year of court fights, the shooter Chicago police officer Jason Van Dyke was charged with the first-degree murder.

Now, with the heat rising for various attempts to bury this story for a year,Rahm Emanuel has fired Police superintendent fires Garry McCarthy:

The head of the Chicago Police Department was fired Tuesday amid widespread criticism over how authorities responded to the fatal shooting of a black teenager by a white police officer last year.

Mayor Rahm Emanuel (D) said he formally asked Garry F. McCarthy, the Chicago police superintendent, for his resignation on Tuesday morning, a week after video footage of the shooting was released and the officer was charged with murder.

“He has become an issue, rather than dealing with the issue, and a distraction,” Emanuel said. He added that while he is loyal to McCarthy, whom he praised for his leadership of the department, the needs of the city are more important.

Even as the embattled Emanuel dismissed his police superintendent and made other vows of increased police accountability, announcing a task force to review police oversight, another Illinois official suggested that federal intervention was needed for the Chicago police. Illinois Attorney General Lisa Madigan wrote a letter Tuesday asking the Justice Department to investigate possible civil rights violations by the Chicago Police Department.

Anger has erupted in Chicago since authorities released footage of Jason Van Dyke, a city police officer, shooting Laquan McDonald, a 17-year-old, last year. In the video, Van Dyke is seen firing a volley of shots at McDonald, many of them after the teenager had already fallen to the ground.

What is clear now that the video has been released, is that there has been an aggressive attempt to sweep everyting under the rug.

The arbiter of banal mainstream opinion that is the New York Times editorial board has cut Rahm Emanuel a new asshole:

The cover-up that began 13 months ago when a Chicago police officer executed 17-year-old Laquan McDonald on a busy street might well have included highly ranked officials who ordered subordinates to conceal information. But the conspiracy of concealment exposed last week when the city, under court order, finally released a video of the shooting could also be seen as a kind of autonomic response from a historically corrupt law enforcement agency that is well versed in the art of hiding misconduct, brutality — and even torture.

Mayor Rahm Emanuel demonstrated a willful ignorance when he talked about the murder charges against the police officer who shot Mr. McDonald, seeking to depict the cop as a rogue officer. He showed a complete lack of comprehension on Tuesday when he explained that he had decided to fire his increasingly unpopular police superintendent, Garry McCarthy, not because he failed in his leadership role, but because he had become “a distraction.”

Mr. Emanuel’s announcement that he had appointed a task force that will review the Police Department’s accountability procedures is too little, too late. The fact is, his administration, the Police Department and the prosecutor’s office have lost credibility on this case. Officials must have known what was on that video more than a year ago, and yet they saw no reason to seek a sweeping review of the police procedures until this week.

………

Justice Department officials, however, said on Tuesday that the department did not ask the city to withhold the video from the public because of its investigation. That makes this whole episode look like an attempt by the city, the police and prosecutors to keep the video under wraps, knowing the political problems it would most likely create.

I hope that this is a death knell for Emanuel’s political career, he is a cancer on Democratic Party politics, but the next election is 3 years down the road, and that is a long time in politics.

This is a Feature, not a Bug

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What a surprise. Obama’s Jihad on whistle-blowers, and openness has led to a situation where there is no accountability in government programs:

Justice Department watchdogs ran into an unexpected roadblock last year when they began examining the role of federal drug agents in the fatal shootings of unarmed civilians during raids in Honduras.

The Drug Enforcement Administration balked at turning over emails from senior officials tied to the raids, according to the department’s inspector general. It took nearly a year of wrangling before the D.E.A. was willing to turn over all its records in a case that the inspector general said raised “serious questions” about agents’ use of deadly force.

The continuing Honduran inquiry is one of at least 20 investigations across the government that have been slowed, stymied or sometimes closed because of a long-simmering dispute between the Obama administration and its own watchdogs over the shrinking access of inspectors general to confidential records, according to records and interviews.

The impasse has hampered investigations into an array of programs and abuse reports — from allegations of sexual assaults in the Peace Corps to the F.B.I.’s terrorism powers, officials said. And it has threatened to roll back more than three decades of policy giving the watchdogs unfettered access to “all records” in their investigations.

“The bottom line is that we’re no longer independent,” Michael E. Horowitz, the Justice Department inspector general, said in an interview.

The restrictions reflect a broader effort by the Obama administration to prevent unauthorized disclosures of sensitive information — at the expense, some watchdogs insist, of government oversight.

………

n a rare show of bipartisanship, the administration has drawn scorn from Democrats and Republicans. The Obama administration’s stance has “blocked what was once a free flow of information” to the watchdogs, Senator Patrick J. Leahy of Vermont, the ranking Democrat on the Judiciary Committee, said at a hearing.

They have it wrong.

Obama simply does not believe in accountability for his administration, because he believes that they, and he, are honorable men, so we have the war on all forms of public accountability.

This is counter to both common sense, and to the intentions of the founders when they created the Constitution, who understood that a balance of powers, for which regulatory authorities need knowledge of what is going, is crucial to that idea.

Why I say that Barack Obama is the Worst Constitutional Law Professor Ever™.

Our NATO “Ally”

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Journalists in Turkey uncovered arms shipments from the Turkish Military to ISIS/ISIL/Daesh/Whatever.

Of course, the response of Ankara was to charge those journalists with espionage and treason:

A court in Istanbul has charged two journalists from the opposition Cumhuriyet newspaper with spying after they alleged Turkey’s secret services had sent arms to Islamist rebels in Syria.

Can Dundar, the editor-in-chief, and Erdem Gul, the paper’s Ankara bureau chief, are accused of spying and “divulging state secrets”, Turkish media reported. Both men were placed in pre-trial detention.

According to Cumhuriyet, Turkish security forces in January 2014 intercepted a convoy of trucks near the Syrian border and discovered boxes of what the daily described as weapons and ammunition to be sent to rebels fighting against Syrian president Bashar al-Assad.

It linked the seized trucks to the Turkish national intelligence organisation (MIT).

The revelations, published in May, caused a political storm in Turkey, and enraged president Recep Tayyip Erdogan who vowed Dundar would pay a “heavy price”.

He personally filed a criminal complaint against Dundar, 54, demanding he serve multiple life sentences.

Turkey has vehemently denied aiding Islamist rebels in Syria, such as the Islamic State group, although it wants to see Assad toppled.

“Don’t worry, this ruling is nothing but a badge of honour to us,” Dundar told reporters and civil society representatives at the court before he was taken into custody.

Understand, the very fact that they were charged with, “divulging state secrets” means constitutes an admission on the part of the Turks that they did sent arms to ISIS.

This is not a surprise.

Erdogan is looking to establish an Islamic state in Turkey, so it’s no surprise that he is supporting the Islamic state in Syria.

It does put that shoot-down of the Russian in perspective, though.

Germany Finally Does Something Useful for Greece

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It appears that Germany had combed through the data that it has managed to obtain from various tax havens, and has turned over to Greece the names of over 10,000 tax cheats:

Germany has handed Athens the names of more than 10,000 of its citizens suspected of dodging taxes with holdings in Swiss banks.

The inventory, which details bank accounts worth €3.6bn – almost twice the last instalment of aid Athens secured from creditors earlier this week – was given to the Greek finance ministry in an effort to help the country raise tax revenues.

They could have done this at the beginning of the whole crisis, and done a lot more to help both the Greek people and the Euro Zone.

The Germans wanted their pound of flesh, though, so it’s taken 3 years for them to turn over this data.

He’s Back!

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Remember Martin Shkreli?

The parasite who (ironically) bought the anti-parasite, and then raised the price by over 5,000%.

After the media sh%$ storm, he promised to lower the price.

He lied:

Turing Pharmaceuticals AG will not reverse its decision to raise the price of a decades-old drug, Daraprim, by more than 5,000 percent, backing out of previous statements that it would cut the cost by the end of the year.

In an announcement on Tuesday, the company said that the list price of Daraprim, which jumped from $13.50 a pill to $750 a pill earlier this year, will not change. Instead, the company will offer hospitals up to 50 percent discounts and will make other adjustments to help patients afford Daraprim, a drug used to treat a parasitic infection and often given to HIV patients.

Out of the goodness of their hearts though, they will be selling a smaller bottle to make it a bit easier for hospitals to stock the drug.

We need villagers, torches, and pitchforks.

Our Noble Allies in the Middle East

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The United Arab Emirates is sending Colombian mercenaries to fight in Yemen.

One wonders if they were hired from the right wing death squads, or the naroterrorist FARC:

The United Arab Emirates has secretly dispatched hundreds of Colombian mercenaries to Yemen to fight in that country’s raging conflict, adding a volatile new element in a complex proxy war that has drawn in the United States and Iran.

It is the first combat deployment for a foreign army that the Emirates has quietly built in the desert over the past five years, according to several people currently or formerly involved with the project. The program was once managed by a private company connected to Erik Prince, the founder of Blackwater Worldwide, but the people involved in the effort said that his role ended several years ago and that it has since been run by the Emirati military.

The arrival in Yemen of 450 Latin American troops — among them are also Panamanian, Salvadoran and Chilean soldiers — adds to the chaotic stew of government armies, armed tribes, terrorist networks and Yemeni militias currently at war in the country. Earlier this year, a coalition of countries led by Saudi Arabia, including the United States, began a military campaign in Yemen against Houthi rebels who have pushed the Yemeni government out of the capital, Sana.

………

It is also a glimpse into the future of war. Wealthy Arab nations, particularly Saudi Arabia, Qatar and the Emirates, have in recent years embraced a more aggressive military strategy throughout the Middle East, trying to rein in the chaos unleashed by the Arab revolutions that began in late 2010. But these countries wade into the new conflicts — whether in Yemen, Syria or Libya — with militaries that are unused to sustained warfare and populations with generally little interest in military service.

“Mercenaries are an attractive option for rich countries who wish to wage war yet whose citizens may not want to fight,” said Sean McFate, a senior fellow at the Atlantic Council and author of “The Modern Mercenary.”

“The private military industry is global now,” said Mr. McFate, adding that the United States essentially “legitimized” the industry with its heavy reliance on contractors in Iraq and Afghanistan over more than a decade of war. “Latin American mercenaries are a sign of what’s to come,” he said.

Hiring mercenaries is not an indication that our “Allies” in the region are the good guys.

Neither is the indiscriminate bombing of civilians by the Saudis.

Our foreign policy is both morally bankrupt and incompetent.