The transformation of Reverend Al Sharpton from street provocateur to civil rights eminence ranks as one of the more remarkable image makeovers in American public life. And mainstream journalism has played a central role. Anyone doubting as much should read the recent (August 2) cover story of Newsweek magazine, "The Reinvention of the Reverend Al." Written by Allison Samuels and Jerry Adler, the article is a fawning and misleading portrait of the Harlem-based preacher/politician. The piece doesn't quite beatify Sharpton. But it does make a highly selective use of information, some of it factually wrong, in stating the case for "the Rev," as he is commonly known, as a moral conscience of the nation. It also stands as an example, as if any more were needed, that "diversity" in the newsroom isn't about a diversity of opinion.
The unexpected departure of General Motors CEO Ed Whitacre (right) last week was reportedly due to tensions over the timing of a public offering, which the Obama administration wants to take place before the November Congressional elections so that it can declare some kind of “success” for the still-unpopular auto bailout.
A premature IPO must be a really bad idea if it’s too much for Whitacre, who has not exactly demonstrated principled leadership. There’s the problem of taking the GM job in the first place. What kind of capitalist would be a party, or more precisely an accessory after the fact, to the violation of private property rights represented by the crushing of GM bondholders? While CEO, Whitacre did not disappoint his masters in the White House, even appearing in a TV commercial in April in which he falsely claimed that GM had paid back the US government in full and five years ahead of time.
Isabel Vincent and Ginger Adams Otis report in today’s New York Post that New York City has cut off funding for Alianza Dominicana, a nonprofit group for which Rep. Charles Rangel (D-NY) secured a $2.6 million federal earmark in June. In addition, the Post reports that Alianza Dominicana, which is Spanish for Dominican Alliance, is now the subject of a probe by the Department of Investigation (DOI), the City’s version of the FBI.
Last week, NLPC filed a Complaint with the House Ethics Committee against Rangel detailing his involvement with Alianza and its CEO Moises Perez. Alianza is an ACORN-like community action group for Dominicans that has become politically powerful after gorging on taxpayer funds for 25 years. As reported in the New York Post last Sunday, the group is facing a host of financial problems, including a failure to pay state and federal taxes. Click here to download a 10-page pdf of the Complaint.
The Complaint focuses on Rep. Rangel's efforts to direct millions of dollars in taxpayers' money to a politically well-connected but financially unstable nonprofit called Alianza Dominicana. Rangel's relationship with the controversial group based in New York City was the subject of a front page story in the Sunday August 8, 2010 New York Post.
Charlie Gasparino of Fox Business Network reported yesterday that the Obama Administration, Federal Reserve and Wall Street firms (like Goldman Sachs, Citigroup, etc.) are exploring a “face-saving” measure by splitting the presidentially beloved ShoreBank Corporation in two, with the community/green jobs lender surviving with the “good” assets while the FDIC and private investors absorb the toxic assets. Another reporter following the story told me that ShoreBank's Friday deadline from the investors has been extended but he didn't know how long. A spokeswoman from Goldman Sachs refused to comment on the issue.
Here's the split-the-baby scenario explained by Gasparino:
His name was Joseph Castello. But for years he was known to his associates as "Joey Checks." That's because for almost a decade Castello handled other peoples' checks - more than $600 million worth, in fact. And about a third of that sum was laundered. On July 7, a three-judge panel for the U.S. Court of Appeals, Second Circuit, ruled that Castello had to pay forfeiture in the amount of $12,012,924.31 and vacate all claims to his $9 million Greenwich, Connecticut home. The decision reverses an earlier ruling by U.S. District Judge Leonard Wexler who had deemed any forfeiture excessive. Evidence indicates the circuit court made the right call.
Former Murtha crony Paul Magliocchetti was indicted yesterday on 11 counts. The indictment was not unexpected and relates primarily to Magliocchetti’s rather hamhanded manuevers to evade campaign contribution limits by having family members, employees and friends make contributions for which they were paid back.
The indictment certainly relates the PMA “pay to play” scheme, but it does not address the underlying possible crimes by members of Congress who secured earmarks for PMA clients in return for campaign contributions and other benefits. It is not known to what extent, if any, the Justice Department has sought a plea bargain with Magliocchetti in return for information about members of Congress. Maggliocchetti’s son Mark is cooperating with prosecutors but it is not known if his information goes beyond his father to members of Congress.
ShoreBank’s capital deficiency worsened in the second quarter, according to newly submitted financial results to regulators, and the Chicago-based lender now needs to raise at least $190 million just to meet targets set out in March by state and U.S. banking regulators….
The auto bailout is a massive failure. It did not save jobs. It is a fallacy to claim that more jobs exist in an economy because particular firms have been saved from going out of business. Automobile jobs exist in the United State because of consumer demand for automobiles. Bailing out car companies does not increase demand, nor will it increase the number of cars built and sold.
All the auto bailout did was shift jobs from one set of firms to others. Because GM and Chrysler are poorly managed, and are joined at the hip with the United Auto Workers, they will not produce cars as efficiently as competitors. In the long run, the bailout will cost American jobs.