Category: regulation

F%$# the Cable Companies

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The FCC is proposing that broadband be defined as 25 mbps download and 3 mbps upload, and the cable companies are having kittens:

The cable lobby is opposed to a Federal Communications Commission plan to define “broadband” as speeds of at least 25Mbps downstream and 3Mbps up.

Customers do just fine with lower speeds, the National Cable & Telecommunications Association (NCTA) wrote in an FCC filing Thursday (thanks to the Washington Post’s Brian Fung for pointing it out). 25Mbps/3Mbps isn’t necessary to meet the legal definition of “high-speed, switched, broadband telecommunications capability that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology,” the NCTA said.

“Notably, no party provides any justification for adopting an upload speed benchmark of 3Mbps,” NCTA Counsel Matthew Brill wrote. “And the two parties that specifically urge the Commission to adopt a download speed benchmark of 25 Mbps—Netflix and Public Knowledge—both offer examples of applications that go well beyond the ‘current’ and ‘regular’ uses that ordinarily inform the Commission’s inquiry under Section 706″ of the Telecommunications Act.

Hypothetical use cases showing the need for 25Mbps/3Mbps “dramatically exaggerate the amount of bandwidth needed by the typical broadband user,” the NCTA said.

“Netflix, for instance, bases its call for a 25Mbps download threshold on what it believes consumers need for streaming 4K and ultra-HD video content—despite the fact that only a tiny fraction of consumers use their broadband connections in this manner, and notwithstanding the consensus among others in the industry that 25Mbps is significantly more bandwidth than is needed for 4K streaming,” the NCTA said. “Meanwhile, Public Knowledge asserts in conclusory fashion that an ‘average’ US household constantly streams at least three high-definition movies simultaneously while also running various ‘online backup services and other applications’—without providing any evidence indicating that such usage is at all ‘average.'”

The commission defines broadband as 4Mbps down and 1Mbps up but hasn’t changed the definition since 2010. The FCC is required under Section 706 to determine whether broadband is being deployed to Americans in a reasonable and timely way, and the group must take action to accelerate deployment if the answer is negative. Raising the definition’s speeds provides more impetus to take actions that promote competition and remove barriers to investment, such as a potential move to preempt state laws that restrict municipal broadband projects.

Here is the money quote:

Though a majority of Americans can purchase broadband of at least 100Mbps, Wheeler has focused on the lack of competition at higher Internet speeds. While 75 percent of American homes have at least two options for wired broadband of 4Mbps/1Mbps, only 25 percent have a choice of at least two providers at the 25Mbps/3Mbps threshold:

4/1 download is the telco’s old DSL, which hasn’t been upgraded since the early 200s.

What’s more, it never will be upgraded, as the phone companies have decided that there is not sufficient profit there.

By upgrading the definition of broadband to something that actually describes the way that broadband is used today, it makes it far more difficult for states to prevent municipal broadband.

Seriously, just f%$# the cable companies.

Come to think of it, “F%$# the Cable Companies,” would be a good platform for a political party.

Not Enough………

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The SEC has fined Standard & Poor’s ratings agency and banned them from rating mortgage backed (MBS) securities for a year:

Financial companies are still paying the price for the crisis of 2009, as Standard & Poor’s showed when it agreed on Wednesday to pay the US government and two states more than $77m to settle charges that it inflated its ratings of mortgage-backed securities.

In its first enforcement action against a major rating agency, the Securities and Exchange Commission accused S&P of fraudulent misconduct, saying the company loosened standards on its ratings to drum up business in recent years.

The agreement requires S&P to pay more than $58m to the SEC, $12m to New York and $7m to Massachusetts.

As part of its agreement with the SEC, Standard & Poor’s Ratings Services, a division of McGraw Hill Financial, will take a “timeout” from rating certain types of mortgage-backed securities for a year.

“These settlements involve findings of intentional fraud in 2011 and 2012, well after the financial crisis,” said Andrew Ceresney, director of the SEC’s enforcement division, on a call with reporters. “The financial crisis may be behind us, but these cases are an important reminder that the race-to-the-bottom behavior exists even though the financial crisis has ended.”

S&P said in a statement that it did not admit or deny any of the charges.

It’s likely the first in a line of settlements between S&P and government agencies. In 2013, the Justice Department and attorneys general from other states filed civil lawsuits against the company for misrepresenting risks in the years leading up to the financial crisis.

“This is the first time a major credit rating agency has been subject to a timeout,” Ceresney said. “It’s unprecedented.”

It is only unprecedented because the Obama administration has been so deferential to the banksters.

It’s chump change for them, and they are a (relatively) small player in the MBS ratings game, so they will be crying to the bank.

What should have happened is a criminal indictment, which would have been immediately followed by an Arthur Andersen style implosion.

That would make the banksters sit up and notice.

I Want to Move to Canada, and Not for the Healthcare This Time

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Canada has just passed a law making illegal for software to update without the specific consent of the user. It’s an anti spyware/malware law:

Installing computer programs without consent became a civil offence punishable by fines in Canada this week.

Under the new regulations that form part of Canada’s anti-spam legislation, it is now illegal for a website to automatically install software on a visitor’s computer or for an app on your phone to be updated without first obtaining express consent from the owner or another authorised party. The updated rules are designed to protect Canadians from the “most damaging and deceptive forms of spam and online threats” without interfering with legitimate business.

The revised rules are targeting nuisances and worse such as adware on PCs and rogue apps on smartphones. False or misleading representations of products or services are also prohibited under the new regulations.

I will note that that this also has the effect of making Apple’s automatic, “Break your competitor’s software,” illegal.

I would like to see a similar law in the US.

While I am at it, I would also like to see an uninstaller as being mandatory under law.

The number of times that I’ve had to tediously uninstall a buggy update that installed itself (Adobe Acrobat comes to mind) pisses me off.

While I am at it, I want a pony.

What the F%$#ing F%$#?

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Police Detained, and Child Protective Services opened an investigation on the family, because the parents allowed their children to walk home from the park:

It was a one-mile walk home from a Silver Spring park on Georgia Avenue on a Saturday afternoon. But what the parents saw as a moment of independence for their 10-year-old son and 6-year-old daughter, they say authorities viewed much differently.

Danielle and Alexander Meitiv say they are being investigated for neglect for the Dec. 20 trek — in a case they say reflects a clash of ideas about how safe the world is and whether parents are free to make their own choices about raising their children.

“We wouldn’t have let them do it if we didn’t think they were ready for it,” Danielle said.

………

On Dec. 20, Alexander agreed to let the children, Rafi and Dvora, walk from Woodside Park to their home, a mile south, in an area the family says the children know well.

The children made it about halfway.

Police picked up the children near the Discovery building, the family said, after someone reported seeing them.

………

The more lasting issue has been with Montgomery County Child Protective Services, he said, which showed up a couple of hours after the police left.

Mary Anderson, a spokeswoman for CPS, said she could not comment on cases but that neglect investigations typically focus on questions of whether there has been a failure to provide proper care and supervision.

In such investigations, she said, CPS may look for guidance to a state law about leaving children unattended, which says children younger than 8 must be left with a reliable person who is at least 13 years old. The law covers dwellings, enclosures and vehicles.

This is nuts.

Notwithstanding the , “It bleeds, it leads,” standards of local news coverage, children have literally never been safer from stranger abduction, and crime rates are at a decades long low, but the ginned up child abduction mythology of the early 1980s keeps the general public, as well as law enforcement and the social services bureaucracy, in a state of acute paranoia.

I Will Set Aside my Skepticism ……… For Now

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In what amounts to a major change in policy, Obama appears to have to endorsed municipal owned and run broadband networks:

U.S. President Barack Obama said laws that impede local governments from bringing competitively priced, high-speed Internet to their residents hold back businesses and raise prices for consumers.

Obama used the the well-wired city of Cedar Falls, Iowa, which he said provides broadband access that’s almost 100 times faster than the national average, as an example for the rest of the country and to urge repeal of laws the prevent communities from creating their own networks.

“High-speed broadband isn’t a luxury, it’s a necessity,” Obama on Wednesday told an audience at Cedar Falls Utilities, which has extended fiber lines capable of high Internet speeds to all local residences and businesses. “This is about helping local businesses grow, prosper and compete in a global economy.”

The president is urging the Federal Communications Commission to address barriers that keep communities from building their own broadband networks. His remarks were intended to touch on one of the messages he’ll deliver in his State of the Union address to the nation next week.

While the FCC might rule on this, the chance of any meaningful legislation from a Republican Congress is about the same as Ayman al-Zawahiri becoming a contributing editor at Charlie Hebdo.

Truth be told, I really don’t expect any significant moves on this issue, given the obvious heat that he and the FCC will take on net neutrality.

We Have a New Definition of Chutzpah

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Obviously, the classic definition, the story of a boy who killed his parents, and then asked for mercy as an orphan remains the front runner, but the fact that Freedom Industries is asking for prosecutors to recuse themselves because they were among the 300,000 people whose water they poisoned:

A federal judge will take up whether the U.S. Attorney’s office can prosecute cases against former Freedom Industries executives or if a conflict of interest exists.

U.S. District Judge Thomas Johnston is scheduled to hear disqualification requests from former Freedom President Gary Southern and former company executive Dennis Farrell in a 1:30 p.m. hearing today.

Both Southern and Farrell have asked the federal judge to disqualify U.S. Attorney Booth Goodwin’s office from the case, saying there is a conflict of interest because the prosecutor’s employees were affected by last January’s chemical leak, which affected 300,000 people in nine counties.

Farrell’s motion only took issue with Goodwin’s office but Southern’s motion also sought to disqualify “agents and investigators” working with the office.

“The conflict of interest is real: the U.S. Attorney, his assistants, investigators and office staff were actual victims of the crimes charged against Mr. Farrell,” Farrell’s motion said. “Of equal or perhaps greater gravity, husbands, wives and children of the prosecutors and staff of the (U.S. Attorney’s office) also were, and allegedly may continue to be, actual victims of the crimes charged.”

In a previous filing, Goodwin said no one in his office has a personal or financial stake in the outcome of this case. He said no one on the prosecution team is an “actual victim” because the general public is the victim in Clean Water Act violations. He also said no one on his staff is a claimant in the class action lawsuits or in the Freedom bankruptcy case.

Seriously?

Because they are arguing that because they contaminated the water for half the f%$#ing state of West Virginia, no one should be allowed to prosecute them?

Seriously?

I guess that it is proof of the old adage, “If you have the facts on your side, pound the facts. If you have the law on your side, pound the law. If you have neither on your side, pound the table.”

The Battle over Tax Avoidance in the EU Begins

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The EU is instituting major changes in the taxation of digital items in EU.

It makes changes in the Value Added Tax (VAT), both in rates and how it is assessed:

Europe’s tax showdown could be headed straight to people’s wallets.

With the new year, a change in fiscal rules in the European Union is increasing the tax on many purchases of digital content like e-books and smartphone applications.

Under the new rules, first approved in 2008, the tax rate on digital services like cloud storage and movie streaming will be determined by where consumers live, and not where the company selling the product has its European headquarters. Tax experts say Europe’s revamped rules could add up to an extra $1 billion in annual tax revenue for European governments.

The bit about having the VAT assessed based on the location of the purchaser (technically it works this way in the US, but this rule is rarely followed).

This this is all about the predatory tax policies of places like Luxemburg and Ireland:

The changes to Europe’s so-called value-added tax — a tax on goods and services similar to sales taxes in the United States — are part of a continuing push by lawmakers to tax the region’s digital economy more heavily. Companies like Apple and Amazon have been roundly criticized for housing their European operations in low-tax countries like Ireland and Luxembourg. The companies say they operate there legally.

Many of the world’s largest tech companies selling digital products, like Amazon and Microsoft, now house their European digital businesses in Luxembourg, where the V.A.T. rate is as low as 3 percent for e-book purchases. In contrast, countries like Britain charge companies a 20 percent sales tax for selling e-books. Analysts say the current rules provide an advantage to global companies that have the financial muscle to shop around for the lowest tax rate.

………

One of the European countries most affected by the tax change will be Luxembourg. The small country’s low value-added tax rates have enticed Apple to set up its international iTunes business there, and Microsoft’s digital download operation is also based there.

Luxembourg’s corporate tax system is being challenged by several European investigations into whether politicians gave preferential treatment to the likes of Amazon and a financing unit of Fiat, the Italian carmaker. And Jean-Claude Juncker, Luxembourg’s former prime minister, who now runs the executive arm of the European Union responsible for the continuing investigations, has been criticized for his role in promoting the country’s low-tax policies.

For the longest time, the EU thought that the status of tax haven EU members was considered a feature, and not a bug, but with the current fetish for austerity, this attitude appears to changed.

In any case, it is about to really suck for Luxemburg and Ireland, whose economies are largely built on being tax evasion.

Well, It’s a Start

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South Korea has indicted Uber CEO Travis Kalanick:

South Korea has indicted the chief executive officer and local subsidiary of Uber Technologies Inc for violating a law governing public transport, becoming the latest jurisdiction to challenge the U.S. taxi service provider.

The Seoul Central District Prosecutors’ Office issued the indictment against CEO Travis Kalanick and the firm’s Korean unit for violating a law prohibiting individuals or firms without appropriate licenses from providing or facilitating transportation services, an Uber spokeswoman said.

The prosecutors’ office declined to comment.

“Uber Technologies respects the Korean legal system and will provide its full cooperation,” the company said in a statement without detailing the charges brought against it.

Uber, through its apps, charges fees to play matchmaker for passengers and drivers – some registered as taxi drivers. But a lack of regulation for the relatively new business model has brought Uber to the attention of authorities worldwide.

Taiwan and the Chinese mainland city of Chongqing on Monday separately said they were investigating Uber over concerns it and its drivers were not appropriately licensed.

Seeing as how Uber’s basic business model is lawlessness with a few legal walls to ensure that people like Kalanick will never face any liability for anything, the idea that he has been personally indicted is a good thing.

Here’s hoping that he he actually has to stand trial there.

Hotel Telecommunications F%$#ery

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Marriott specifically, who just got fined for jamming personal Wi-Fi hotspots, and is now attempting to get regulatory forbearance:

Microsoft and Google don’t agree on much, but they’ve presented a united front against the hotel industry, which is trying to convince government regulators to give them the option of blocking guests from using personal Wi-Fi hotspots.

The tech companies recently joined the wireless industry’s lobbying group and a handful of other parties in opposing the hotel industry’s petition, which seeks the Federal Communications Commission’s permission to block personal Wi-Fi networks on their properties.

This summer, the American Hospitality & Lodging Association and Marriott International asked the FCC to declare that a hotel operator can use equipment to manage its network even if it “may result in ‘interference with or cause interference’ to a [wireless device] being used by a guest on the operator’s property.”

 Now that many people have cell phones, and don’t pay the usurious fees for phone calls, Marriott wants to jam personal Wi-Fi hotspots so that they can charge equally usurious fees for that:

The Marriott-owned Gaylord Opryland Hotel and Convention Center tech staff was using a monitoring system that de-authenticated guests’ personal Wi-Fi hot spots. Meanwhile, the hotel was charging exhibitors and attendees anywhere from $250 to $1,000 for Wi-Fi service, the FCC said.

In October, Marriott settled an FCC complaint about the practice for $600,000 but argued that it hadn’t broken the law and was using technology to protect guests from “rogue wireless hotspots that can cause degraded service, insidious cyber attacks and identity theft.”

A month later, the agency asked for comments on Marriott’s earlier request to find such Wi-Fi blocking legal.

 Like I said, Hotel Telecommunications F%$#ery.

I think that the deadline for comment has passed, but you can read the comments here.

Am I a Bad Person to Experience Unalloyed Glee at the Misfortune of Others?

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That’s Gotta Hurt!

Well, let me clarify:

I am talking about one entity specifically………

I’m talking about one entity who was caught trying to deceive regulators specifically………

I’m talking about one entity who was caught trying to deceive regulators and defraud the public specifically………

I’m talking about one entity who was caught trying to deceive regulators and defraud the public specifically whose business model is primarily rent seeking………

OK, spoiler alert, it’s Monsanto, who just had a fraudulent patent revoked:

Patent EP1812575 held by Monsanto has been revoked by the European Patent Office (EPO) after the international coalition No Patents on Seeds! filed an opposition in May 2014.

A further opposition was filed by Nunhems / Bayer CropScience. In November 2014, Monsanto requested that the patent be revoked in its entirety and the EPO complied with this request.
The patent covered conventionally bred tomatoes with a natural resistance to a fungal disease called botrytis, which were claimed as an invention. The original tomatoes used for this patent were accessed via the international gene bank in Gatersleben, Germany, and it was already known that these plants had the desired resistance. Monsanto produced a cleverly worded patent in order to create the impression that genetic engineering had been used to produce the tomatoes and to make it look ‘inventive’.

“Revoking this patent is an important success. It was more or less based on a combination of fraud, abuse of patent law and biopiracy. The patent could have been used to monopolise important genetic resources. Now breeders, growers and consumers have a chance of benefiting from a greater diversity of tomatoes improved by further breeding”, says Christoph Then, a coordinator of No Patents on Seeds!. “The intended resistance is based on complex genetic conditions, which are not known in detail. So genetic engineering is clearly not an option in this case.”

It would be nice if patent law were changed to invalidate gene and species patents, but it’s a start.

NLRB Brings Charges Against McDonald’s “Co-Employer” with its Franchisees

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This is a very big deal.

It was a big deal when the NLRB found the fast food chain shared some responsibility as to the treatment of their employees with their franchisees, and now its general counsel has Basically, the National Labor Relations Board has charged the company with violation of labor laws:

The National Labor Relations Board announced on Friday that its general counsel had brought 78 charges against McDonald’s and some of its franchise operators, accusing them of violating federal labor law in response to workers’ protests for higher wages around the country.

The general counsel’s move immediately drew outrage from a variety of national business groups because the labor action deemed McDonald’s a joint employer, a status that would make the fast-food titan equally responsible for actions taken at its franchised restaurants.

The labor board’s complaint asserts that McDonald’s and numerous franchise operators in more than a dozen cities illegally retaliated and made threats against workers who had joined national protests pushing for a base wage of $15 an hour in the nation’s fast-food restaurants.

………

The N.L.R.B.’s general counsel, Richard F. Griffin Jr., said that McDonald’s was a joint employer because it set numerous requirements for how food was prepared, how stores were run and how employees were managed. About 90 percent of the company’s restaurants in the United States are franchise operations.

Mary Joyce Carlson, a lawyer for the Fight for 15 movement seeking higher wages for the workers, said, “Today’s news makes it clear that the N.L.R.B.’s general counsel finds merit in the claim that McDonald’s — a $5.6 billion global company — is a joint employer because it exerts substantial power over the working conditions of employees at McDonald’s franchise stores and is therefore responsible for compliance with employment and labor laws.”

As I have noted before, McDonald’s franchising program places much tighter controls over the behavior of their franchise holders than most other similar restaurant chains, physically owning the property, directing personnel policy and, it appears, directing retaliation against legal unionization activities.

The general counsel issued the charges through 13 regional offices, including Manhattan, Chicago and Los Angeles. The first trials are scheduled to begin in March. The charges said that McDonald’s and its franchisees illegally disciplined employees who had protested, reduced their hours, spied on them and restricted their ability to communicate with union representatives.

For a company the size of McDonald’s, I don’t think that any penalties will meaningfully impact on their bottom line, they are a big company, but if this holds, it could form a foundation for criminal prosecutions against management, because it could form the basis of a criminal conspiracy.

Of course, we would need a DoJ that didn’t ignore law breaking by CEOs **cough** Eric “Place” Holder **cough**, but I can dream about this.

I Doubt his Motives, but I Approve the Action

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New York Governor Andrew Cuomo has banned fracking in New York state:

Finally, New York is about to ban fracking.

In a long-awaited decision, Gov. Andrew Cuomo announced that the state will not move forward with high volume hydraulic fracturing, better known as fracking, because of the threat it poses to air, water and public health.

The governor’s been hedging on the issue since 2012, when his administration first undertook a health impact review. At a public year-end cabinet meeting Wednesday, New York state Acting Health Commissioner Dr. Howard Zucker provided an overview of what he said could be ”significant health risks” from the oil and gas extraction process, which has been prevented in the state under a temporary moratorium put in place in 2008.

“Would I live in a community [with fracking] based on the facts I have now?” Zucker asked. “Would I let my child play in a school field nearby, drink water from the tap or grow vegetables from the soil? My answer is no.”

He concluded, “I cannot support high-volume hydraulic fracturing in the great state of New York.”

I cannot help but assume that there is a crass self-serving reason behind this, because, well, it’s Andrew Cuomo.

Still, it was the right decision.

We are the Texas of the Developed World

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I am paraphrasing the late Molly Ivins here, but the fact that the United States antediluvian approach to child care is driving women out of the workplace, and so making us less competitive than other members of the developed world, should be an subject of national shame:

Since Kerry Devine, 32, and her friends began having children, she has noticed a stark difference between her female friends in Auburn, Wash., where she lives, and those in England and Cyprus, where she grew up. In the United States, they almost all stopped working outside the home, at least until their children were in school. Yet, she says, she can’t think of a friend in Europe who left work after her children were born.

Ms. Devine quit her job after she had her first child, a girl, four years ago, because she thought 12 weeks of maternity leave was too short. “I just didn’t want to leave her in day care or pay for the expenses of it,” she said. When she gave birth to twin boys this year, a return to work — she had been a property manager for apartment buildings — looked even less plausible.Since Kerry Devine, 32, and her friends began having children, she has noticed a stark difference between her female friends in Auburn, Wash., where she lives, and those in England and Cyprus, where she grew up. In the United States, they almost all stopped working outside the home, at least until their children were in school. Yet, she says, she can’t think of a friend in Europe who left work after her children were born.

Ms. Devine quit her job after she had her first child, a girl, four years ago, because she thought 12 weeks of maternity leave was too short. “I just didn’t want to leave her in day care or pay for the expenses of it,” she said. When she gave birth to twin boys this year, a return to work — she had been a property manager for apartment buildings — looked even less plausible.

Her story would have played out differently, she said, if she had been living in her native England. Like many European countries, Britain offers a year of maternity leave, much of it paid, and protections for part-time workers, among other policies aimed at keeping women employed.

One would think that the supporting family values would actually involve supporting people who actually have a family, but the “family values” crowd seems to think that all they need to do is to tell women what to do with their ovaries, and hate te ghey, and it is Mission Accomplished.

F%$# that

I’ll Go With the Under on Net Neutrality

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The cable companies pet FCC commissioner has estimated the cost of net neutrality regulations to consumers at $17 billion, while an open internet advocacy group has pegged the cost at $0:

After a dramatic shift in the debate over net neutrality last month, many expect the FCC will reclassify internet providers so as to bar them from giving special treatment to some websites over others. The question now becomes how much (if at all) the agency’s decision, which turns on an arcane process called Title II, will cost consumers.
Depending on who you ask, the answer is that Title II, which would treat internet providers akin to public utilities, will be ruinously expensive — or will have little financial impact at all. Among the Cassandras, you can count Republican FCC Commissioner Ajit Pai:

 “It will cost $17 billion in new fees,” Pai told an audience of telecom lawyers in Washington on Friday, warning that consumers’ monthly internet bills are set to soar.

Pai’s number, which has also popped up on the Wall Street Journal‘s editorial page and in other right-leaning outlets, is lifted from a purported study by the Progressive Policy Institute, a think tank that has reportedly taken funding from AT&T.

………

Like so much else in the pitched debate over net neutrality, however, the $17 billion number may have been ginned up for political purposes. According to Free Press, a nonpartisan advocacy group for open internet, the figure represents a misleading worst-case scenario that will never come to pass.

As the group points out, reclassification does not appear to require any new consumer fees. Such fees, it they do appear, will instead be the result of a separate set of decisions by the FCC and various governments.

I have no doubt that the PPI has taken funding from AT&T.  After all, their parent organization, the now defunct Democratic Leadership Council (DLC) was funded by the Koch brothers.

Also note that most of the $17 billion involved is on a separate regulatory ruling, and that the FCC has made it very clear that they will engage in regulatory forbearance, and not impose the charges that Mr. Pai is mentioning, but these charges have nothing to do with reclassification of Title II.

Even if there are a few buck additional charges, it would well worth it to prevent “Cable Company F%$#ery.”

And We Have a Couple More Credit Union Failures

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It’s been a over a month since we’ve had a bank failure Friday, there has not been a bank failure since early November, but we just had a couple more credit union failures:

  1. Metropolitan Church of God Credit Union, Detroit, MI
  2. Health One Credit Union, Detroit, MI

Here is the Full NCUA list.

I’m still not sure why the ratio between credit union failures and bank failures is some where between 3 and 4:1.

AT&T Rescinds Ransom Letter

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Remember AT&T’s threat that it would curtail broadband rollout if network neutrality were implemented?

Well that threat is is  now inoperative:

AT&T now says it isn’t really going to halt a huge fiber investment because of net neutrality despite its CEO recently claiming the company would do just that.

Don’t celebrate yet—AT&T is making no promises to build anywhere.

AT&T CEO Randall Stephenson told investors on November 12 that “We can’t go out and invest that kind of money deploying fiber to 100 cities not knowing under what rules those investments will be governed.” Stephenson was referring to an April announcement in which AT&T said it would “expand its ultra-fast fiber network to up to 100 candidate cities and municipalities nationwide, including 21 new major metropolitan areas.”

Because of uncertainty about net neutrality rules, Stephenson said at the investor event this month that it would be better to “pause” instead of proceeding with the 100-city investment. Construction in all 100 cities was never guaranteed to begin with, as it was contingent on municipal cooperation with AT&T.

I’m not surprised that they’ve blinked.

Even the FCC wasn’t buying this as a credible threat.

More of This

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At a hearing before the Senate Banking Committee, the senior Senator from the Commonwealth of Massachusetts cut Mel Watt, the Chairman of the Federal Housing Finance Agency, a well deserved new asshole:

What started as a dry, lame-duck session hearing on the Federal Housing Finance Agency in the Senate Banking Committee on Wednesday, got heated when U.S. Sen. Elizabeth Warren, D-Mass., went guns blazing after the FHFA director.

Warren, an outspoken progressive and a likely candidate for the 2016 Democrat presidential nomination, went on the attack during FHFA Director Melvin Watt’s first hearing before the committee, saying that he’s never done anything to help homeowners who are underwater and facing foreclosure.

The hearing started benignly enough, with Watt’s prepared remarks delivered in a measured tone. That soon ended, when Warren took the mic.

Warren is known for aggressively grilling witnesses, but this was an unusual case of a “blue on blue” attack, as Watt is a former congressional Democrat and Obama appointee, and considered a strong advocate for affordable housing and homeowner assistance.

It does not matter what Watt was.

If you are working on housing in the Obama administration, your role is to coddle the criminals working for Wall Street at the expense of the ordinary American citizen, even if it costs the taxpayer money:

Five million families lost their homes during the financial crisis and millions more are still struggling,” Warren said, prefacing her questions to Watt. “According to the latest data from CoreLogic…another 5.3 million homeowners remain underwater on their homes. And people are continuing to lose their homes every day in foreclosure.

“We talk a little bit about the law here, now one of your duties under the law. One of your duties is to conserve the assets of Fannie and Freddie, but another duty given equal importance by Congress … is to implement a plan that seeks to maximize assistance for homeowners and take advantage of available programs to minimize foreclosures,” Warren said.

She went on to recite that Congress explicitly included reduction of loan principal as an option for the FHFA to use.

“Principal reduction is often a win-win that both helps Fannie and Freddie and helps a family,” she said.

She cited a 2013 Congressional Budget Office study found that even a modest principal reduction plan for Fannie and Freddie mortgages could help 1.2 million underwater homeowners, prevent 43,000 defaults and save Fannie and Freddie about $2.8 billion.

………

Watt appeared a little shaken by the line of attack.

“It’s probably an overstatement to say it’s not been a priority,” Watt stammered. “It’s just a very difficult issue. The reason it is difficult is because we are looking for exactly what you said – a win-win situation. We have to do this in a way that is responsible, otherwise we just reduce principal for everybody across the board…is not what anybody I think is advocating for, so then we have to decide what is a responsible way to do that—”

Warren cut him off.

“Chairman Watt, you have had a year to do that, you have known for five years before that what the problem was, we have two studies coming out showing that Fannie and Freddie could make money by doing this,” she said. “In the meantime you have done the reps and warranties, the buyback policy, private mortgage insurance rules, a whole list of tough technical things, and I applaud you for doing that, but people have lost their homes in the last year and every day that you delay more families lose their homes. There are 5.4 million families out there underwater so I want to know when are you going to have an answer on this?”

See my earlier comment about Obama’s priorities.

For all the flak that I have thrown at exiting Attorney General Eric “Place” Holder, the buck stops at 1600 Pennsylvania Avenue, and the reason that nothing has been done to fix the cesspools of corruption is because Barack Obama does not want the swamps drained.