Barack Obama has shown no hesitation to wield the power of the state, but he claims that he’s unable to stop these outrageous AIG bonuses, even though taxpayers now own 80% of AIG.
Obama wants the government to dominate the health care and energy economies. He’s proposed huge new taxes to help finance expansion of the federal government. More to the point, he would allow bankruptcy judges to abrogate contracts as part of his mortgage bailout. His automaker bailout contemplates the setting aside or revision of UAW contracts.
It is astonishing that these bonuses will be paid to executives at AIG’s financial products division, the unit that wrote trillions of dollars’ worth of credit-default swaps. AIG placed bets on derivative trades that it could not possibly pay off if it lost. This is called fraud. These bad bets were big enough to bring down the financial system.
Instead of claiming … Read More ➡
Politico reported on March 11:
Over the course of the past decade, Rep. John P. Murtha has earmarked millions of dollars for the Electro-Optics Center at Penn State University — money that has, in turn, gone to clients of the PMA Group, the Murtha-linked lobbying shop that was raided in November as part of a federal criminal probe.
PMA may soon be Murtha’s undoing. The firm was founded by his top operative Paul Magliocchetti, who is now reportedly under investigation for making campaign donations in the names of other people. Campaign finance violations are not treated seriously by prosecutors, except for this one. The result can be prison time and big fines. If faced with the prospect of jail, would Magliocchetti turn on Murtha?
PMA has collapsed as most of it’s lobbyists have quit. It’s quite a fall from last year when it ranked as the 10th-biggest Washington lobbying firm … Read More ➡
Roll Call reports today:
The West Virginia High Tech Consortium has provided more than $75,000 in free rent and administrative services to the Robert H. Mollohan Family Charitable Foundation, according to tax records, while receiving millions of dollars worth of earmarks from Rep. Alan Mollohan (D-W. Va.), who serves as the family foundation’s secretary.
Questions about Mollohan’s foundation are not new. Michael Forsythe of Bloomberg News reported on June 22, 2006:
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Mollohan helped funnel at least $179 million in U.S. government contracts over the last six years to companies that gave to the West Virginia Democrat’s family-run charity, tax records and other documents show.
The money went to 21 companies and nonprofit groups that contributed $564,427 to the Robert H. Mollohan Family Charitable Foundation from 2002 to 2004 — almost half of the charity’s revenue, according to the documents. The congressman, an Appropriations Committee member whose finances are under federal
Independent filmaker Evan Coyne Maloney has produced this short exploring local reaction to NLPC-exposed tax evasion by Rep. Charles Rangel (D-NY). The clip is getting heavy interest on YouTube, with 12,500 views as of today.
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NLPC President Peter Flaherty said today, “Excessive executive pay and perks are indeed a problem, as NLPC sought to highlight way before the financial meltdown. But the real scandal now is bank bailouts without end.
Instead of engaging in fake populism by trashing corporate travel to Las Vegas or the Super Bowl, Obama should produce a plan to deal with the banking crisis. Throwing more taxpayer money at AIG and Citigroup as they lurch from crisis to crisis is not a plan. I am worried that by the time Obama and Timothy Geithner come up with a strategy, there will be no money left.
The tally for AIG is now $175 billion with no end in sight. AIG placed bets on derivative trades that it could not possibly pay off if it lost. This is called fraud. These bad bets were big enough to bring down the financial system. Obama … Read More ➡
According to Peter Flaherty, President of the National Legal and Policy Center (NLPC):
“The trillion-dollar stimulus plan has not even passed Congress and the administration proposes to throw another trillion at Wall Street on top of the $750 billion already provided without a tangible benefit.
Buying toxic assets was supposed to be the purpose of the first TARP. After Henry Paulson and Timothy Geithner warned that our financial system would collapse if TARP were not passed, they spent the money on something else — bolstering the capital position of banks. Politically well-connected Citigroup has received $45 billion, more than the book value of the company, and it is still in trouble.
The burden is on President Obama and Timothy Geithner to explain why another Wall Street bailout will work when the first one did not. This latest plan would have the taxpayer finance the purchase of troubled assets, opening the … Read More ➡
In an article titled “Rangel’s Financial Disclosures Omitted Data Over 30 Years, a Report Says,” today’s New York Times reports:
In an interview on C-SPAN on Sunday and in a letter mailed to supporters released Tuesday, Mr. Rangel said the conservative-oriented National Legal Policy Center had sent an investigator to examine the finances of a villa he owns in the Dominican Republic, then passed along critical information to a reporter from The Post. The newspaper subsequently printed an article questioning whether Mr. Rangel had reported all the rental income he received from the villa on his financial disclosure forms and tax returns.
“Newspapers forwent actual, independent reporting, and instead relied on this organization to do the dirty work for them,” Mr. Rangel wrote.
Unfortuntely for Rangel, the story also details a new report from the liberal-oriented Sunlight Foundation that accuses Rangel of thirty years of financial disclosure violations:
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