Category: Corruption

Speculation About the Pope’s Abdication Gains Mainstream Currency

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The speculation about why the Pope is stepping down has hit Reuters:

Pope Benedict’s decision to live in the Vatican after he resigns will provide him with security and privacy. It will also offer legal protection from any attempt to prosecute him in connection with sexual abuse cases around the world, Church sources and legal experts say.

“His continued presence in the Vatican is necessary, otherwise he might be defenseless. He wouldn’t have his immunity, his prerogatives, his security, if he is anywhere else,” said one Vatican official, speaking on condition of anonymity.

“It is absolutely necessary” that he stays in the Vatican, said the source, adding that Benedict should have a “dignified existence” in his remaining years.

Vatican sources said officials had three main considerations in deciding that Benedict should live in a convent in the Vatican after he resigns on February 28.

Vatican police, who already know the pope and his habits, will be able to guarantee his privacy and security and not have to entrust it to a foreign police force, which would be necessary if he moved to another country.

“I see a big problem if he would go anywhere else. I’m thinking in terms of his personal security, his safety. We don’t have a secret service that can devote huge resources (like they do) to ex-presidents,” the official said.

It could be nothing, but my guess is that we are going to hear the drip, drip, drip of all of this for months.

I actually have a bit of sympathy for him.  Benedict was left with the mess that John Paul created.  (It’s pretty clear that JPII gave then Cardinal Ratzinger instructions to cover up the allegations when he was head of the Inquisition Congregation for the Doctrine of the Faith.)

Unsurprising

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Click for full size


This screen shot is from 2002!

Someone took a look at the record, and confirmed that the Tea Party was created by the Koch brothers and big tobacco:

A new academic study confirms that front groups with longstanding ties to the tobacco industry and the billionaire Koch brothers planned the formation of the Tea Party movement more than a decade before it exploded onto the U.S. political scene.

Far from a genuine grassroots uprising, this astroturf effort was curated by wealthy industrialists years in advance. Many of the anti-science operatives who defended cigarettes are currently deploying their tobacco-inspired playbook internationally to evade accountability for the fossil fuel industry’s role in driving climate disruption.

The study, funded by the National Cancer Institute of the National Institute of Health, traces the roots of the Tea Party’s anti-tax movement back to the early 1980s when tobacco companies began to invest in third party groups to fight excise taxes on cigarettes, as well as health studies finding a link between cancer and secondhand cigarette smoke.

You can see a link to the old web page at the Wayback machine, but I don’t recommend it. It’s flash hell.

So the Teabaggers are both Koch suckers, and stooges for big tobacco.

Heady brew.

Least Surprising Study Discovery Ever

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I’m shocked, shocked to find that gambling is going on here!

The Project on Government Oversight (POGO) has completed a study that shows that the revolving door at the SEC may have short circuited effective regulation:

Former U.S. Securities and Exchange Commission staffers who now work in the private sector may have helped derail last year’s effort to reform the $2.6 trillion money market fund industry, according to a report released on Monday.

The case study on money market fund lobbying is part of a 60-page report by the Project on Government Oversight (POGO). It is one example within a broader review by the non-profit government watchdog that examines in detail how the “revolving door” at the SEC may have impacted policy and enforcement decisions over a 10-year period.

The publication of the report comes a few weeks after President Barack Obama nominated Mary Jo White, a former prosecutor and high-profile white collar defense lawyer, to lead the SEC.

While White’s nomination has generated little controversy so far, some have questioned whether her past defense of Wall Street executives could impact how she does on the job.

“The revolving door is deeply embedded at the SEC and throughout the federal government,” the report said.

“The close linkage between the regulators and the regulated can influence the culture, the values and the mindset of the agency – not to mention its regulatory and enforcement policies.”

Well, duh.

But this is not an unfortunate linkage, it is bribery.  If you are a regulator, you know for a fact that when you leave public service, if you have played nicely with the finance industry, and haven’t murdered a prostitute, that you will get a job that would make you set for life in just a couple of years.

I’m not sure how to put an end to this, but a way needs to be found to stop this.

Meet the New Boss, Same as the Old Boss………

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It appears that we will get fooled again

Jack Lew, who has been nominated by Barack Obama as Timothy Geithner’s replacement as Secretary of the Treasury.

Well, if you think back to Geithner’s confirmation hearings, it turned out that he simply did not pay his Social Security taxes for a few years while working at the IMF.

Well Jack Lew does one better, he squirreled away funds in the Cayman Islands:

Jack Lew, President Barack Obama’s Treasury Secretary nominee, previously held up to $100,000 in investments in an offshore hedge fund located in the Cayman Islands, according to financial disclosure forms.

Lew’s financial disclosure forms, filed in 2009 and 2011, showed that Lew had invested between $50,000 and $100,000 in a fund called Citigroup Venture Capital International Growth Partnership (Employee) II, L.P. — the very type of fund President Obama has repeatedly criticized.

The fund is an international venture capital fund for employees of Citigroup. According to his official White House biography, Lew served as managing director and chief operating officer of Citi Global Wealth Management and then Citi Alternative Investments (CAI) from 2006 to 2008.

Yeah, he is so not going to be the guy who cleans up Wall Street

H/t AmericaBlog.

Why I Call Him the Worst Constitutional Law Professor Ever.

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Just in case your wondering how bad Obama’s assertions of the right to kill anyone, at any time, are, note that not only are they dubious constitutionally, they directly conflict with the black letter text of the Magna Carta, meaning that he’s not just ignoring 230 years of law, he’s ignoring 798 years of law:

Two provisions of Magna Carta deserve our attention today, a gift to us from the Barons of 13th century England.

38. No bailiff for the future shall, upon his own unsupported complaint, put anyone to his “law”, without credible witnesses brought for this purposes. {This was replaced by improved legislation in 1863}

39. No freemen shall be taken or imprisoned or disseised {deprived of land} or exiled or in any way destroyed, nor will we go upon him nor send upon him, except by the lawful judgment of his peers or by the law of the land. {This remains in force for the people of England, but no longer in the USA}

Our ancestors spent much blood, sweat, and tears between that day at Runnymede and the meeting in 1878 at Philadelphia. The liberties provided by the Constitution were won over those 30 generations, by the unruly Saxons and Normans of Medieval England — and the Founders, jealous of their liberties and willing to fight for them. In the decade since 9-11 we’ve thoughtlessly thrown away political structures that took centuries to build.

This country in general, and the Obama administration in general, is going in a profoundly wrong directions.

This is Called a Back Loaded Bribe

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The soon to be ex-Secretary of the Treasury Timothy Geithner plans to write a book:

Timothy Geithner, who played a lead role battling the global financial crisis both at the U.S. Treasury and New York Federal Reserve, is planning to write a book on the U.S. response, a spokeswoman said on Wednesday.

Geithner, who was the longest-serving member of President Barack Obama’s economic team when he stepped down as secretary of the Treasury last month, is credited with helping to calm the financial storm that swept through Wall Street in 2007-2009.

But his support for bailing out big banks was controversial and many critics have accused him of doing too little for Main Street. In 2009, some lawmakers called for his resignation.

His spokeswoman said he had not started writing the book and will meet with publishers soon.

Any guess as to the size of his advance?

I’m guessing that it will be 7 figures.

Say what you will about the banksters, but they do tend to throw a few crumbs to their evil minions.

Least Surprising News of the Day

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Timothy Geithner’s Treasury Department ignored guidelines and allowed bailed out banksters to write their own paychecks:

The Treasury Department ignored its own guidelines on executive pay at firms that received taxpayer bailouts and last year approved compensation packages of more than $3 million for the senior ranks at General Motors, Ally Financial and American International Group, according to a watchdog report released Monday.

 The report from the special inspector general for the Troubled Assets Relief Program said the government’s pay czar signed off on $6.2 million in raises for 18 employees at the three companies. The chief executive of a division of AIG received a $1 million raise, while an executive at GM’s troubled European unit was given a $100,000 raise. In one instance, an employee of Ally’s Residential Capital was awarded a $200,000 pay increase weeks before the subsidiary filed for bankruptcy.

 ………

 Monday’s report evaluates Treasury’s actions since then, with stinging allegations of lax oversight and supervision. Romero said Geoghegan deferred to the pay proposals provided by the companies, approving raises above pay limits and failing to link compensation to performance.

 “Treasury made no meaningful reform to its processes,” the special inspector said in the latest report. “Lacking criteria and an effective decision-making process, Treasury risks continuing to award executives of bailed-out companies excessive cash compensation without good cause.”

This is so not shocking.

Words Cannot Express My Disgust

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Israel has been administering the Depo-Provera contraceptive to Ethiopian Women without their knowledge:

It isn’t an apology or an acceptance of responsibility. But for the first time, an Israeli government official has admitted what thousands of Ethiopian Jewish women have allegedly known for years – doctors in Israel have been injecting Ethiopian women with long-acting birth control medication known as Depo-Provera without the informed consent of the women. The effect of the shots lasts for months and the practice effectively sterilizes women for that period of time. Many Ethiopian women have reportedly received these shots for years with little or no say in the decision to receive them.

This is bigoted, and this is contemptible.

Whoever was behind this needs to be drummed out of the medical profession.

At least they have put an end to the practice:

Health Ministry Director General Prof. Ron Gamzu has instructed the four health maintenance organizations to stop the practice as a matter of course.

 The ministry and other state agencies had previously denied knowledge or responsibility for the practice, which was first reported five years ago.

 Gamzu’s letter instructs all gynecologists in the HMOs “not to renew prescriptions for Depo-Provera for women of Ethiopian origin if for any reason there is concern that they might not understand the ramifications of the treatment.

This is quite literally the least they could once this came to light.

In addition to being racist, it’s bad medicine. Depo-Provera has a lot of nasty side effects.

Contemptible

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Biotech firms are aggressively lobbying to ban the use of generic alternatives to their ruinously expensive drugs:

In statehouses around the country, some of the nation’s biggest biotechnology companies are lobbying intensively to limit generic competition to their blockbuster drugs, potentially cutting into the billions of dollars in savings on drug costs contemplated in the federal health care overhaul law.

The complex drugs, made in living cells instead of chemical factories, account for roughly one-quarter of the nation’s $320 billion in spending on drugs, according to IMS Health. And that percentage is growing. They include some of the world’s best-selling drugs, like the rheumatoid arthritis and psoriasis drugs Humira and Enbrel and the cancer treatments Herceptin, Avastin and Rituxan. The drugs now cost patients — or their insurers — tens or even hundreds of thousands of dollars a year.

Two companies, Amgen and Genentech, are proposing bills that would restrict the ability of pharmacists to substitute generic versions of biological drugs for brand name products.

Bills have been introduced in at least eight states since the new legislative sessions began this month. Others are pending.

Seriously. We need to move away from proprietary IP licensed drug development leveraging government research to another model.

The current one is not working.

They use monopoly rents to further expand their monopoly rents by capturing the political process, and we all pay, over, and over, and over, and over again.

Read Charlie Pierce

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He says it all on the recent DC Court of Appeals ruling:

David Sentelle Is A Hack

By Charles P. Pierce

The next time I hear some lefty mooing about the president’s having let down the side on something or another, it better be about something of substance, like the Keystone XL pipeline, or I’m going to boot said lefty’s hindquarters in the general direction of the federal appeals court of the District Of Columbia, which today laid down the most singular piece of partisan hackery to come out of a court since Antonin Scalia picked the previous president. For precise legal analysis, I’ll leave it to Scott at LG&M to explain. This, children, is what you get when you operate politically under the theory that They’re All The Same. You get 20 or 30 years of primarily Republican judges acting primarily as Republicans, drawn from the legal chop-shops in the conservative movement bubble, and doing their partisan duty like performing seals.

………

Read the rest.

Geithner As Sociopath: The Interview

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In an interview with Liaquat Ahamed at The New Republic Timothy Geithner reveals his good German.

In response to the idea of justice, his response was that it, “wasn’t his thing.”

LA: One of the ways that people have figured out in the past to reconcile the politics was to go populist. That was what Roosevelt did. You, on the other hand, had been resolutely against that. You refer to it as Old Testament justice, implying that while it may be emotionally satisfying, it doesn’t serve any purpose.

 TG: I never used that phrase as a pejorative description. I just used it as a simple shorthand to refer to the understandable need people had for justice. But the President didn’t ask me to come do this to be the architect of a political strategy. I never felt that was my thing. I had some views on the issue, but I didn’t give them much weight. I thought my job was to figure out the financial parts.

(emphasis mine)

Justice doesn’t matter, and notwithstanding his protestations, he ridiculed it as, “Old Testament justice”.

He knows that his job is to be the lick-spittle watchdog for the banksters.

Note however that the Cossacks work for the Czar

The IMF Gets One Right

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IMF chief Christine Lagarde is calling for increases in the minimum wage, strengthening the social safety net, and reining in bankers pay:

Christine Lagarde, the managing director of the IMF, has warned that “corrosive” inequality was hindering the world’s economic recovery.

 In a combative speech to an audience of some of the world’s wealthiest financiers at the World Economic Forum, [Davos] Ms Lagarde said that bankers’ pay should be cut to close the gap between the rich and poor. “Excessive inequality is corrosive to growth; it is corrosive to society. I believe that the economics profession and the policy community have downplayed inequality for too long” she said.

 Ms Lagarde, a former French finance minister who was appointed head of the International Monetary Fund in 2011, added that it might be necessary for nations to impose minimum wages in order to reduce income gaps.

 II believe policies such as robust social safety nets, extending the reach of credit, and – in some cases – minimum wages can help” she told the audience of business and political leaders in the Swiss ski resort of Davos. Ms Lagarde also warned that necessary reforms of the multinational banking sector, which plunged the Western world into recession in 2008-09, were being watered down by industry lobbying.

 ………

 Ms Lagarde told delegates that bankers’ pay is too high. “We must move in the direction of more prudent compensation practices” she said. “Ultimately, this is all about accountability: we need a financial sector that is accountable to the real economy– one that adds value, not destroys it”.

Your mouth to God’s ear, ma’am.

Good Riddance

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Lanny Breuer, head of the criminal division at the Department of Justice and pimp for the banksters, has resigned:

Lanny Breuer is out as head of the Criminal Division of the Department of Justice, according to the Washington Post. After his ratlike performance on Frontline (transcript here) it won’t be long before we find him at some creepy New York or DC law firm defending his best friends, the banks and their sleazy employees. His legacy is simple: too big to fail banks can’t possibly commit crimes, so minor civil fines and false promises of reform are punishment enough. Jamie Dimon couldn’t have put it better.

BTW, the Department of Justice has said that they would never work with the producer of the segment ever again:

He’s gone, but I’m certain that he’s going to a cushy Wall Street gig where he will make millions of dollars.

It’s how back loaded bribery works.

He Didn’t Tweet a Picture of His Penis to a Football Player’s Imaginary Penis, So it Does Not Matter………*

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This explains why the media has largely ignored the revelation in the latest release of the Federal Reserve’s meeting minutes from 2007, which is that Timothy Geithner was leaking changes to the discount window to the big banks ahead of their official release:

In the summer of 2007, as storm clouds gathered over the world’s financial system, then-New York Federal Reserve President Timothy Geithner allegedly informed the Bank of America and other banks about the possibility the U.S. central bank would lower one of its critical interest rates, according to a senior Fed official.

 Jeffrey Lacker, the head of the Richmond Fed, originally raised the allegation during a Fed conference call in August 2007, and he stuck to his 5-year-old claim against the current U.S. treasury secretary in a statement provided to Reuters on Friday.

 “From conversations I had prior to the video conference call on August 16, 2007, I was aware of discussions among a few large banks about borrowing from their discount windows to support the asset backed commercial paper market,” Lacker said in the statement. “My understanding was that (New York Fed) President Geithner had discussed a reduction in the discount rate with these banks in connection with these initiatives.”

The folks at Zero Hedge were the first ones to notice this, and they nail it when they say, “[J]ust when we thought our opinion of the outgoing Treasury Secretary and former NY Fed head Tim Geithner, whose TurboTax incompetence is now legendary, couldn’t get lower, it got lower. Much lower.“

Here is the pertinent section from the transcript of the August 16, 2007 conference call:

MR. LACKER. If I could just follow up on that, Mr. Chairman.

 CHAIRMAN BERNANKE. Yes, go ahead.

 MR. LACKER. Vice Chairman Geithner, did you say that [the banks] are unaware of what we’re considering or what we might be doing with the discount rate?

 VICE CHAIRMAN GEITHNER. Yes.

 MR. LACKER. Vice Chairman Geithner, I spoke with Ken Lewis, President and CEO of Bank of America, this afternoon, and he said that he appreciated what Tim Geithner was arranging by way of changes in the discount facility. So my information is different from that.

 CHAIRMAN BERNANKE. Okay. Thank you. Go ahead, Vice Chairman Geithner.

 VICE CHAIRMAN GEITHNER. Well, I cannot speak for Ken Lewis, but I think they have sought to see whether they could understand a little more clearly the scope of their rights and our current policy with respect to the window. The only thing I’ve done is to try to help them understand—and I’m sure that’s been true across the System—what the scope of that is because these people generally don’t use the window and they don’t really understand in some sense what it’s about.

They also note that there was a sudden and unexplained jump of 50 points (4%) in the S&P 500 in just 1 hour.  (Note that they also make a compelling circumstantial case that Geithner’s schedule indicates that he leaked this information)

BTW, as ZH also notes, the Fed’s 5 year delay in the release of records means that Geithner has outlasted the statute of limitations.

Awfully convenient, nu?

We won’t have a fix to our financial system until Geithner, and his mentor Robert Rubin are under criminal investigation for what they dud.

*Not my words, but a slight reworking of sentiments expressed by JR at the Stellar Parthenon BBS.

Whiskey Tango Foxtrot?

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The DC Court of Appeals has just ruled that almost all recess appointments are unconstitutional:

Strictly curbing the President’s power to temporarily fill government posts to keep an agency in operation, the D.C. Circuit Court ruled Friday that the constitutional authority to fill a vacancy can only be used when one Congress has ended and before a new Congress comes to town, or when there is a formal break at the end of one session, but not during any other mid-session break. That part of the ruling by the three-judge panel was unanimous. On a second part, a two-judge majority ruled that the vacancy-filling power only applies to vacancies that actually open up during a formal recess, between sessions or between Congresses. Because lower courts are split on both issues, this historic controversy over the constitutional separation of powers is likely to go on to the Supreme Court.

 In the current atmosphere of partisan gridlock, which often involves thwarting of presidential nominations, the ruling provides a major new opportunity for a minority in the Senate to deny the President the authority even temporarily to put a new government officer to work in a vacant spot. When a vacancy arises while Congress is in session, and the Senate does not act on it, the President will not be able to fill it during the next time the Senate takes a break. The ruling came one day after the Senate chose not to make a major change in its filibuster rule, which is the main weapon of a Senate minority seeking to challenge presidential action.

I expect an appeal to the Supreme Court, though they may ask for an en banc hearing by the whole court of appeals first.

Unsurprisingly, David Sentelle, the right winger who gave us Ken Starr, is a part of this.

The 2nd part of the ruling ruling, where they say that the only recess that counts is the few days every two years when the old Congress has ended, and the new Congress is sworn in, flies in the face of over 150 years of precedent.

As to the pro-forma sessions, Obama needs to go Article 2 Section 3 of the Constitution on Congress:

He shall from time to time give to the Congress Information of the State of the Union, and recommend to their Consideration such Measures as he shall judge necessary and expedient; he may, on extraordinary Occasions, convene both Houses, or either of them, and in Case of Disagreement between them, with Respect to the Time of
Adjournment, he may adjourn them to such Time as he shall think proper; he shall receive Ambassadors and other public Ministers; he shall take Care that the Laws be faithfully executed, and shall Commission all the Officers of the United States.

(emphasis mine)

So, with the House refuses to adjourn, which is what led to the pro-forma sessions, Obama can adjourn them.

As to the claim that recess appointments can only be made during intercongress recesses, and not intracongress recesses, I cannot believe that the Supreme Court could support that, but since Bush v. Gore, I’ve made it a point of never underestimating the politicization of the right wing of that body.

The 2016 Coup Attempt Begins

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The Republicans are looking to change electoral vote allocation to favor Republicans in 2016:

Earlier this week, Republican National Committee Chair Reince Priebus endorsed a Republican plan to rig the next presidential election to make it nearly impossible for the Democratic candidate to win the White House, no matter who the American people vote for. The election-rigging plan, which would allocate electoral votes by congressional district rather than by states as a whole in a handful of states that consistently vote for Democratic presidential candidates, would have allowed Mitt Romney to narrowly win the Electoral College last November despite losing the popular vote by nearly four points.

On Monday, seven Pennsylvania Republican state representatives introduced a bill to make this vote-rigging scheme a reality in their state. Under their bill, the winner of Pennsylvania as a whole will receive only 2 of the state’s 20 electoral votes, while “[e]ach of the remaining presidential electors shall be elected in the presidential elector’s congressional district.”

Under this scheme, Obama would have only gotten 7 electoral votes from Pennsylvania.

There would have been similar losses of electoral votes in Ohio, and Wisconsin, Florida, and Virginia.

This is part 94 of why the Electoral College sucks wet farts from dead pigeons.

This also explains why Republicans accuse people of acting like Stalin so often, they are projecting:  Because they try to act like Stalin, they think that everyone else does so too.

What a Surprise

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Another Obama administration foreclosure mitigation program has descended into a morass of corruption and self-dealing:

No wonder the Fed and the OCC snubbed a request by Darryl Issa and Elijah Cummings to review the foreclosure fraud settlement before it was finalized early last week. What had leaked out while the Potemkin borrower reviews were underway showed them to be a sham, as we detailed at length in an earlier post. But even so, what actually took place was even worse than hardened cynics had imagined.

………

There are some issues that are highlighted in the piece, others that are implication that get somewhat lost in the considerable detail. The first, as stressed by Sheila Bair and other observers, is that the reviews were never designed to succeed. This is something we and others pointed out; this was all an exercise in show. The OCC had entered into these consent orders in the first place with the aim of derailing the 50 state attorney general settlement negotiations. This was all intended to be diversionary, but to make it look like it had some teeth, borrowers who were foreclosed on in 2009 and 2010 who thought they were harmed were allowed to request a review. If hard was found, they could get as much as $15,000 plus their home back if they had suffered a wrongful foreclosure, or if they home had already been sold, $125,000 plus any equity in the home. Needless to say, the forms were written at the second grade college level, making them hard to answer. A whistleblower for Wells Fargo reported that of 10,000 letters, harm was found in none because the responses were interpreted in such a way as to deny harm (for instance, if the borrower did not provide dates of certain incidents, those details were omitted from the assessment).

Read the whole thing.

This is One Way to Deal with Proprietorial Overreach

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A petition at the White House has Called for the firing of United States Attorney Carmen Ortiz for her wildly disproportionate prosecution of Aaron Swartz, who committed suicide while facing decades in prison for downloading public documents.

It is now about 80% of the way to reaching the 25,000 signatures to require a response from the Obama administration.

Needless to say, the administration response will be either to do nothing, or to promote her, because they see “tough on crime” as a political winner.

I called it “Murder by Prosecutor” last night, which is (of course) rhetorical excess, but this was proprietorial excess.

Of course, we don’t know why he committed suicide, he did have a history of depression, but it’s fairly certain that this did not help.

On the bright side, I think that this is driving a discussion of overzealous prosecutors, and even if Ms. Ortiz keeps her job, her political career beyond this, she is/was seen as a rising star in the Massachusetts Democratic Party Establishment, has been detoured if not ended, which should hopefully make prosecutors think twice when they decide to destroy someone just to make an example.

Over the past 30 years, US laws have been changed to grant enormous power to prosecutors.

Based on how they file, and what they choose to present at sentencing, they now have the ability to dictate sentences to an unprecedented degree.

This has been corrupting the operation of the federal justice system for decades.