Government Integrity Project

Is the Justice Department Covering Up Congressional Corruption?

Mollohan photoEthics groups are wondering whether the U.S. Department of Justice has become skittish when it comes to investigating members of Congress, after numerous congressional corruption investigations were closed without trial last year, reported the New York Times.

Since the department's case against the late Rep. Ted Stevens (R-AK) notoriously fell apart two years ago, officials have halted at least five other corruption investigations against high-profile congressmen, including Rep. Don Young (R-AK) and Rep. Alan B. Mollohan (D-WV), in photo.

Montana Woman, Five Others Sentenced in Fort Peck Tribal Credit Scam

caughtPatronage and corruption at the U.S. Interior Department's Bureau of Indian Affairs (BIA) is not exactly a well-kept secret. A widespread scam in a BIA loan program in Montana has brought home this reality with full force. And fully six persons have been sentenced as a result. On October 21, one of those persons, Dolly Diane Crowe, a former employee of the credit office at Fort Peck Indian Reservation, was sentenced in U.S. District Court for the District of Montana to two years in prison and three years of probation for theft and conspiracy to obstruct a federal audit. She also will have to make $143,120 in restitution, though the grand total of the scam was much higher. The details of the case underscore the necessity of better oversight at the BIA and indeed call into question why the agency should exist at all.

Rangel Attacks NLPC; Opens Legal Defense Fund

Rangel photoRep. Charles Rangel (D-NY) has formally opened a legal defense fund in an apparent acknowledgement of our accusation that he illegally used almost $400,000 in PAC funds for his legal defense. According to a statement Rangel made to Politics Daily:

The repeated filings of allegations, no matter how unsubstantiated, by the National Legal Policy Committee (sic), a politically-motivated right wing group dedicated to eviscerating civil rights and labor union protections, have led me to this action.

On November 29, we filed a Complaint with the Federal Election Commission alleging that Rangel violated the Federal Election Campaign Act by using almost $400,000 in funds from his National Leadership PAC to pay legal bills related to the House Ethics Committee actions against him.

Irish Bank Bailout Costs American Taxpayers

Irish Euro imageThe scenario has a familiar ring. A country goes on a credit binge. Borrowers in large numbers receive approval for home mortgages and other loans that they can't afford to repay. A sharp upswing in defaults and foreclosures of these now-securitized loans helps trigger a world financial crisis. And a frantic government bails out investors to prevent a depression and defuse political chaos. That's Ireland we're talking about.

What's Behind GM Upgrades?

JP Morgan Chase and Morgan Stanley have initiated coverage of General Motors stock with a positive recommendation, according to Bloomberg reports.  Coincidentally, both firms are the lead underwriters for GM's IPO. Underwriting fees paid to both JP Morgan Chase and Morgan Stanley were recently disclosed in a chart published by the Wall Street Journal showing fees and TARP money received by major underwriters for GM.

UAW Will Cash In on GM Stock Dilution

GM UAW logosEarlier this month, General Motors made a $4 billion cash contribution to its UAW pension fund. Reports state that an additional $2 billion worth of GM common stock will be contributed to the fund. What is not being reported is where the stock is coming from.

In addition to public ownership since the IPO, GM common shares are currently held by the US Treasury, Canadian Government, the UAW and Motors Liquidation Company (creditors of Old GM). Unless the US Treasury is giving away taxpayer shares, new shares will have to be issued for an additional $2 billion worth of common shares to fund UAW pension plans.

GM's Accounting Issues Run Deep

GM logoGeneral Motors has recently disclosed on more than one occasion that "we have determined that our disclosure controls and procedures and our internal control over financial reporting are currently not effective." It remains to be seen how this warning affects future earnings reports, but we can review GM's past to see how previous financial reporting internal control flaws played out.

If Obama Is 'Pro-Business,' He Should Withdraw Wage and Hour Division Nominee Leon Rodriguez

Wage and Hour logoIf Department of Labor Secretary Hilda Solis and Solicitor M. Patricia Smith are pushing the limits of radical advocacy, Leon Rodriguez might just be the person to push them further. Rodriguez, for nearly a year the chief of staff at the Justice Department's Civil Rights Division, is President Obama's presumptive nominee for administrator of DOL's Wage and Hour Division. The president announced on December 2 his intent to name him to the long-vacant post. But like the previous (unsuccessful) nominee, Lorelei Boylan, Rodriguez, an experienced prosecutor, has an expressed belief that what counts is equality of result, not equality under the law - even if employers have to pay the toll. If Obama is genuine about his recently stated desire to promote business development, he should find another candidate.

CNBC: Flaherty Criticizes Obama/CEO Summit

I discussed President Obama's CEO "summit" today with David Callahan, the author Fortunes of Change: The Liberal Rich and the Remaking of America. CNBC hosts are Melissa Francis, Sue Herrera and Michelle Caruso-Cabrera. Here is a transcript:

ShoreBank Successor Named Crooked Contractor to Board

It's only been four months since the FDIC seized the Obama-favored ShoreBank, changed management, adjusted some of the director oversight, and kept the machine running as Urban Partnership Bank. But it turns out a name change makes no difference when it comes to institutions born, raised and protected under Chicago politics. Crain's Chicago Business reports:

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