Citigroup Refuses to Rule Out More ACORN Funding

Citigroup logoBailed-out Citigroup is not ruling out continuing its support for ACORN. Citigroup spokeswoman Andrea Hurst told Fred Lucas of CNSNews.com:

Just for the time being, we are still basically continuing to review materials as far as the internal audit or investigation is concerned. I don’t really have any comment beyond that at this stage.

Hurst is referring to the recently concluded “investigation” by ACORN ally Scott Harshbarger, a former Attorney General of Massachusetts. In response to NLPC’s request in September that Citigroup to end its support for ACORN, the bank said that it was “awaiting the results of the independent audit of ACORN activities now underway.”

As I told CNSNews.com:

The Harshbarger report is a whitewash and limited in scope. So, we are fearful that Citigroup will reinstate support based on this whitewash.

We also asked Citigroup to end the membership of one of its executives, Eric Eves, on the … Read More ➡

Fannie Mae/Freddie Mac Bailed Out Again; CEO Pay Set for Huge Boost

Fannie Mae headquartersOne of the more entrenched principles in business is “pay for performance,” the rewarding of executives with raises, bonuses and other forms of compensation if they meet or exceed expectations. Fannie Mae and Freddie Mac, now wards of the federal government, are negations of that principle. The troubled secondary mortgage lending giants, already having received more than $110 billion in federal subsidies since the fall of 2008, are set for another major feed at the public trough. On December 24, the U.S. Treasury Department, facing a December 31 deadline, approved a no-limit hike in the publicly-traded companies’ combined $400 billion credit line. Were that not enough, regulators approved an annual compensation package of up to $6 million for each chief executive officer. Welcome to pay for performance, Obama-style – not that the Bush version was a bargain.

Fannie Mae and Freddie Mac, originally known as Federal National Mortgage Association … Read More ➡

Nonunion Delphi Retired Employees Get Shaft in Auto Bailout

Delphi CorporationWhen the Obama administration this past spring forced the bankrupt General Motors and Chrysler Corp. into virtual public receivership, officials justified the action as crucial to the survival of the auto industry and indeed the entire economy. Yet this unprecedented action has had several downsides, one of the less heralded of which has been the sudden vulnerability of current and retired employees who don’t belong to a union. Case in point: the roughly 15,000 nonunion retirees of auto parts manufacturer and former GM subsidiary Delphi Corporation on the verge of losing their pension, health insurance and life insurance benefits. These people are getting a first-hand lesson in the drawbacks of not being politically connected. That’s something members of the United Auto Workers (UAW) and other auto industry-related unions don’t have to worry about. 

GM and Chrysler are now wards of Obama administration “car czar” Ron Bloom and his immediate boss, Treasury Secretary … Read More ➡

Goldman Sachs Challenged on Global Warming in Wake of ‘Climategate’

Goldman Sachs logoNLPC has filed a shareholder proposal asking Goldman Sachs to report on the science behind its embrace of global warming in the wake of the ‘Climategate’ scandal.

Goldman’s ‘climate policy’ is more than corporate public relations. In 2007, Goldman participated in the buyout of energy firm TXU. The transaction resulted in the cancelation of 8 of 11 planned coal-fired power plants after pressure from environmental activists.

It might make wealthy financiers in New York City feel good about themselves to scotch electric generation in the name of environmentalism, but it has negative consequences for ordinary people. Electricity is a basic need, like food and medical care. Cancelling plants while parts of the country face regular power shortages, and raising the cost of electricity for consumers, is positively immoral.

The supporting statement for the resolution reads:

In 2005, Goldman Sachs established its “Environmental Policy Framework,” which stated:

“Goldman Sachs acknowledges the

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Consumers Beware: Ally Bank is GMAC

Ally BankWho knew? Ally Bank is running all those TV ads belittling the “fine print” used by other banks. But as the Wall Street Journal detailed on Tuesday, the ads do not disclose that Ally is a unit of troubled GMAC  Financial Services, the former financing arm of GM, now seeking its third multi-billion taxpayer  bailout.

Ally had been offering some of the highest CD interest rates in the nation until federal bank regulators pressured Ally to reduce them. Lower rates are one thing but there is another compelling consideration when shopping CD rates. When you deposit your money with Ally, you abet the financial and auto bailouts.

Now this may not bother some people. Short-term Ally deposits are probably not at more risk than those at other FDIC-insured institutions. But if you believe that the Wall Street and automaker bailouts are an outrageous soaking of the taxpayer to … Read More ➡

Citigroup’s Eric Eve Resigns From ACORN Advisory Committee

Citi logoCitigroup has advised NLPC that Senior Vice President Eric Eve has resigned for ACORN’s Advisory Committee. In a September 28 letter to Citigroup CEO Vikram Pandit, I asked that the bank sever its relationship with ACORN, including Eve’s membership on the Committee.

In an October 29 reply, Citigroup also stated that it has “suspended our charitable financial support and program relationship with ACORN, and we are awaiting the results of the independent audit of ACORN activities now underway.”

This is ominous, and certainly leaves open the possibility of continued Citigroup support for ACORN. The “independent audit” is no such thing. It is an investigation of ACORN by itself, under the direction of ACORN ally Scott Harshbarger.

ACORN’s own description of the “audit” when it was announced on September 22, suggested that it would be something less than comprehensive:

This independent and thorough review, commissioned by the ACORN Board,

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Gingrich Must Sever Ties With Sharpton

Sharpton/GingrichIt is time for former House Speaker Newt Gingrich to end his association with Al Sharpton. The two have been appearing together around the country as part of something called the Education Equality Project.

As Dr. Carl Horowitz of our staff has documented in a Special Report released earlier this year, Sharpton has promoted fake hate crimes against blacks, and has inspired racial antagonism against whites and Jews. Indeed, this long-established pattern of behavior continues to the present.

Just last week, the purported victim of a 2007 racially-motivated attack in West Virginia recanted her story that she had been kidnapped and raped in a backwoods trailer by white men. Sharpton had championed her plight, descending on Charleston to lead an anti-hate rally, much as he rallied to the side of the accuser of the Duke lacrosse players in 2006.

Gingrich shares with Sharpton an affinity for the TV camera. Their … Read More ➡

Wal-Mart, PepsiCo Unapologetic About Bankrolling Sharpton After Rush Limbaugh/NFL Flap

Emailers protesting Wal-Mart support for Al Sharpton’s group, the National Action Network, are getting the following response:

Walmart supports the National Action Network (NAN) as part of an ongoing effort to partner with national organizations that support issues and initiatives of importance to our customers, and the communities we serve.

Our support for NAN is focused on addressing health and wellness issues and other issues important to our customers and associates. Our company will continue to support organizations that can further our mission to help people live better.

Emails to PepsiCo are getting this reply:

As a global consumer products company that serves all people, we support many not-for-profit organizations with a variety of missions. The leaders of these organizations may at times have points of view that do not necessarily represent those of PepsiCo. I want to assure you that this Company does not endorse those individual viewpoints, political

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Colgate-Palmolive Denies Supporting Sharpton Group in Wake of Rush Limbaugh/NFL Controversy

Colgate adEmailers protesting Colgate-Palmolive’s support for Al Sharpton’s group,  the National Action Network (NAN), are getting a response that reads, in part:

We did not participate in the 2009 NAN Conference in New York City.

That’s interesting, because the conference program identifies Colgate-Palmolive as a “sponsor.” Even more interesting, a Colgate-Palmolive ad in a separate program from the same event states, in part:

Colgate-Palmolive is honored to be named Corporation of the Year by the National Action Network…

Emailers do get an admission from the company that it supported NAN last year:

In April, 2008, Colgate was among almost 40 corporate sponsors of a multi-day conference in Memphis organized by the NAN commemorating Martin Luther King Jr. and celebrating his continuing legacy.

It would be pretty hard for Colgate-Palmolive to deny its 2008 sponsorship. I had a confrontation with CEO Ian Cook at the company’s annual meeting where I prodded him … Read More ➡