February 2013 archive

In the “I’ll believe this when I see it” category, there are two bits of news about banking and Wall Street have been too long in the coming and if it happens, there will be a lot of happy dances in places like Zucotti Park.

First, the British Treasury chief has told the “Too Big To Fail” banks that their days are numbered if they flout the law and banking regulations in the future:

George Osborne told executives from JPMorgan that the days of banks being “too big to fail” are over in Britain, and that taxpayers shouldn’t be expected to bail out the lenders. The next time a crisis hits, he wants more options to act. [..]

The new measure gives regulators the power to force a complete separation of a lender’s retail business from its investment banking. Risky investments undermined banks’ stability in 2008, leading to taxpayer bailouts of two big U.K. banks. [..]

The banking standards commission said that the scandal of manipulating key lending indexes (LIBOR) had “exposed a culture of culpable greed far removed from the interests of bank customers.” [..]

Other countries and regulators are also grappling with how to prevent future bailouts. In the United States, legislation known as the Dodd-Frank act seeks to bar banks them from engaging in risky trading on their own account. The European Union is also examining how banks might separate their riskier investment banking operations from the rest of their business.

Besides that, new international rules – known as Basel III – will require banks to hold more financial reserves to protect against possible losses. The requirements will be phased in over the coming years, but banks have said they are too demanding.

The second is the report that the US Department of Justice and state prosecutors intend to file civil charges again the rating service, Standard & Poors, alleging wrong doing  in its rating of mortgage bonds before the financial crisis erupted in 2008. According to the report in The Wall Street Journal

The likely move by U.S. officials would be the first federal enforcement action against a credit-rating firm for alleged illegal behavior related to the crisis. Several state attorneys general are expected to join the case, making it one of the highest-profile and widest-ranging enforcement crisis-era crackdowns.

The expected civil charges against S&P follow the breakdown of long-running settlement talks between the Justice Department and S&P, the people said. [..]

All three credit-rating firms have faced intense criticism from lawmakers for giving allegedly overly rosy ratings to thousands of subprime-mortgage bonds before the housing market collapsed.

The Financial Crisis Inquiry Commission concluded two years ago that the top credit-rating agencies were “key enablers of the financial meltdown.”

The Justice Department and other law-enforcement agencies have long been investigating whether the rating firms broke securities laws or simply failed to predict the housing crisis.

Over at Zero Hedge, Tyler Durdin questions why S&P is being targeted and not the other ratings agencies:

Certainly if S&P is being targeted so will be the Octogenarian of Omaha’s pet rating company, Moody’s as well, not to mention French Fitch. Or maybe not: after all these were the two raters who sternly refused to downgrade the US when the country boldly penetrated the 100% debt/GDP target barrier, and which at last check has some 105% in debt/GDP with no actual plan of trimming spending. As in ever.

And in these here united banana states, it is only reasonable to expect that such crony, corrupt behavior is not only not punished but solidly rewarded.

I expect to be disappointed. Fool me.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

New York Times Editorial: Europe Moves Ahead on Privacy

The European Union is considering far-reaching privacy regulations that would give the citizens of its member countries significant control over how Web sites and marketing companies collect and use data about them. Years in the making, the effort stands in stark contrast to the much slower pace of discussions about online privacy laws in Washington. [..]

The Obama administration has talked with technology and marketing companies about creating voluntary industry standards. But the best way to ensure that Americans can keep their personal information private is through federal legislation backed by regulatory enforcement. Europe is setting an example of how that might be accomplished. While the United States is unlikely to go as far as the E.U., it needs to do a lot more.

Paul Krugman: Friends of Fraud

Like many advocates of financial reform, I was a bit disappointed in the bill that finally emerged. Dodd-Frank gave regulators the power to rein in many financial excesses; but it was and is less clear that future regulators will use that power. As history shows, the financial industry’s wealth and influence can all too easily turn those who are supposed to serve as watchdogs into lap dogs instead.

There was, however, one piece of the reform that was a shining example of how to do it right: the creation of a Consumer Financial Protection Bureau, a stand-alone agency with its own funding, charged with protecting consumers against financial fraud and abuse. And sure enough, Senate Republicans are going all out in an attempt to kill that bureau.

Why is consumer financial protection necessary? Because fraud and abuse happen.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 4 is the 35th day of the year in the Gregorian calendar. There are 330 days remaining until the end of the year (331 in leap years).

On this day in 1789, George Washington becomes the first and only president to be unanimously elected by the Electoral College. He repeated this notable feat on the same day in 1792.

The peculiarities of early American voting procedure meant that although Washington won unanimous election, he still had a runner-up, John Adams, who served as vice president during both of Washington’s terms. Electors in what is now called the Electoral College named two choices for president. They each cast two ballots without noting a distinction between their choice for president and vice president. Washington was chosen by all of the electors and therefore is considered to have been unanimously elected. Of those also named on the electors’ ballots, Adams had the most votes and became vice president.

George Washington (February 22, 1732 – December 14, 1799) was the dominant military and political leader of the new United States of America from 1775 to 1799. He led the American victory over Britain in the American Revolutionary War as commander in chief of the Continental Army in 1775-1783, and he presided over the writing of the Constitution in 1787. As the unanimous choice to serve as the first President of the United States (1789-1797), he developed the forms and rituals of government that have been used ever since, such as using a cabinet system and delivering an inaugural address. As President he built a strong, well-financed national government that avoided war, suppressed rebellion and won acceptance among Americans of all types, and Washington is now known as the “Father of his country”.

In Colonial Virginia, Washington was born into the provincial gentry in a wealthy, well connected family that owned tobacco plantations using slave labor. Washington was home schooled by his father and older brother but both died young and Washington became attached to the powerful Fairfax clan. They promoted his career as surveyor and soldier. Strong, brave, eager for combat and a natural leader, young Washington quickly became a senior officer of the colonial forces, 1754-58, during the first stages of the French and Indian War. Indeed, his rash actions helped precipitate the war. Washington’s experience, his military bearing, his leadership of the Patriot cause in Virginia, and his political base in the largest colony made him the obvious choice of the Second Continental Congress in 1775 as commander-in-chief of the Continental Army to fight the British in the American Revolution. He forced the British out of Boston in 1776, but was defeated and nearly captured later that year when he lost New York City. After crossing the Delaware River in the dead of winter he defeated the enemy in two battles, retook New Jersey, and restored momentum to the Patriot cause. Because of his strategy, Revolutionary forces captured two major British armies at Saratoga in 1777 and Yorktown in 1781. Negotiating with Congress, governors, and French allies, he held together a tenuous army and a fragile nation amid the threats of disintegration and invasion. Historians give the commander in chief high marks for his selection and supervision of his generals, his encouragement of morale, his coordination with the state governors and state militia units, his relations with Congress, and his attention to supplies, logistics, and training. In battle, however, Washington was repeatedly outmaneuvered by British generals with larger armies. Washington is given full credit for the strategies that forced the British evacuation of Boston in 1776 and the surrender at Yorktown in 1781. After victory was finalized in 1783, Washington resigned rather than seize power, and returned to his plantation at Mount Vernon, proving his opposition to dictatorship and his commitment to republican government.

Washington presided over the Constitutional Convention that drafted the United States Constitution in 1787 because of his dissatisfaction with the weaknesses of Articles of Confederation that had time and again impeded the war effort. Washington became the first President of the United States in 1789. He attempted to bring rival factions together in order to create a more unified nation. He supported Alexander Hamilton‘s programs to pay off all the state and national debts, implement an effective tax system, and create a national bank, despite opposition from Thomas Jefferson. Washington proclaimed the U.S. neutral in the wars raging in Europe after 1793. He avoided war with Britain and guaranteed a decade of peace and profitable trade by securing the Jay Treaty in 1795, despite intense opposition from the Jeffersonians. Although never officially joining the Federalist Party, he supported its programs. Washington’s “Farewell Address” was an influential primer on republican virtue and a stern warning against partisanship, sectionalism, and involvement in foreign wars.

Washington had a vision of a great and powerful nation that would be built on republican lines using federal power. He sought to use the national government to improve the infrastructure, open the western lands, create a national university, promote commerce, found a capital city (later named Washington, D.C.), reduce regional tensions and promote a spirit of nationalism. “The name of AMERICAN,” he said, must override any local attachments.” At his death Washington was hailed as “first in war, first in peace, and first in the hearts of his countrymen”. The Federalists made him the symbol of their party, but for many years the Jeffersonians continued to distrust his influence and delayed building the Washington Monument. As the leader of the first successful revolution against a colonial empire in world history, Washington became an international icon for liberation and nationalism. His symbolism especially resonated in France and Latin America. Historical scholars consistently rank him as one of the two or three greatest presidents.

Rolling Stone‘s Matt Taibbi joins Bill to discuss the continuing lack of accountability for “too big to fail” banks which continue to break laws and act unethically because they know they can get away with it. Taibbi refers specifically to the government’s recent settlement with HSBC – “a serial offender on the money laundering score” – who merely had to pay a big fine for shocking offenses, including, Taibbi says, laundering money for both drug cartels and banks connected to terrorists.

Taibbi also expresses his concern over recent Obama appointees – including Jack Lew and Mary Jo White – who go from working on behalf of major banks in the private sector to policing them in the public sector.

Matt has more on Mary Jo White and her involvement with squashing the insider trading case against future Morgan Stanley CEO John Mack by Sec investigator Gary Aguirre.

There are a few more troubling details about this incident that haven’t been disclosed publicly yet. The first involve White’s deposition about this case, which she gave in February 2007, as part of the SEC Inspector General’s investigation. In this deposition, White is asked to recount the process by which Berger came to work at D&P. There are several striking exchanges, in which she gives highly revealing answers.

First, White describes the results of her informal queries about Berger as a hire candidate. “I got some feedback,” she says, “that Paul Berger was considered very aggressive by the defense bar, the defense enforcement bar.” White is saying that lawyers who represent Wall Street banks think of Berger as being kind of a hard-ass. She is immediately asked if it is considered a good thing for an SEC official to be “aggressive”:

   Q: When you say that Berger was considered to be very aggressive, was that a positive thing for you?

   A: It was an issue to explore.

Later, she is again asked about this “aggressiveness” question, and her answers provide outstanding insight into the thinking of Wall Street’s hired legal guns – what White describes as “the defense enforcement bar.” In this exchange, White is essentially saying that she had to weigh how much Berger’s negative reputation for “aggressiveness” among her little community of bought-off banker lawyers might hurt her firm.

   Q: During your process of performing due diligence on Paul Berger, did you explore what you had heard earlier about him being very aggressive?

   A: Yes.

   Q: What did you learn about that?

   A: That some people thought he was very aggressive. That was an issue, we really did talk to a number of people about.

   Q: Did they expand on that as to why or how they thought he was aggressive?

   A: I think and as a former prosecutor, sometimes people refer to me as Attila the Hun. I understand how people can get a reputation sometimes. We were trying to obviously figure out whether this was something beyond, you always have a spectrum on the aggressiveness scale for government types and was this an issue that was beyond real commitment to the job and the mission and bringing cases, which is a positive thing in the government, to a point. Or was it a broader issue that could leave resentment in the business community or in the legal community that would hamper his ability to function well in the private sector?

It’s certainly strange that White has to qualify the idea that bringing cases is a positive thing in a government official – that bringing cases is a “positive thing . . . to a point.” Can anyone imagine the future head of the DEA saying something like, “For a prosecutor, bringing drug cases is a positive, to a point?”

Somehow this sounds like more of the same at the from the Obama administration.  

Oh, I can so do this.

Until about Monday this was a simple story- Art Modell and the Ravens == bad guys.  ‘9ers, storied franchise == good.

And the Ravens are.

It’s your typical tale of elite corporate greed with billionaires threatening to take away their yachts unless you build a new boat basin on the backs of the peons.

I even had a Les Mis clip to go with it.

Now the story is the homophobia of the ‘9ers–

San Francisco 49ers’ Ahmad Brooks, Isaac Sopoaga Deny Participating In ‘It Gets Better’ Gay Youth Video

Huffington Post

Posted: 01/31/2013 5:20 pm EST

“This is America and if someone wants to be gay, they can be gay,” Brooks told the publication. “But I didn’t make any video.” Later, after he was reportedly shown the video on an iPhone, the player clarified, “Oh, that. It was an anti-bullying video, not a gay [rights] video.”

In San Francisco?  I know gay people (men and women) who will kick your ass!

Happy to do it myself.

The fact is that there is no larger and deeper heap of bigotry than Throwball and yes, I am including Turn Left Racing.

Not to mention the Drain Bamage-

Transcript

Will someone hold my hair?

“Liberals have to stop gloating about Sarah Palin getting dumped by Fox News,” Maher began, “even though it happened less than a day after Bobby Jindal told his fellow Republicans to ‘stop being the stupid party.’ That’s just a coincidence. A wonderful, hilarious coincidence.”

In addition to exercising my roman numeral skillz this off beat event has become more and more popular the longer I’ve blogged it.

Call it the ek bump.

Here is a link to past Bissell Kitty Halftime shows and if that Aw factor is not enough- live kitten cam.

They now have an embeddable puppy cam too-

And, this page of Puppy Bowl whores and highlights which may (or may not) run a live feed.  Or you can try the Animal Planet main page.

And, to prove how scandalously mainstream I’ve become-

• Washington Post
• The New York Times
• USA Today

TheMomCat’s live feed link.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 3 is the 34th day of the year in the Gregorian calendar. There are 331 days remaining until the end of the year (332 in leap years).

On this day in 1959, “the music died” when rising American rock stars Buddy Holly, Ritchie Valens and J.P. “The Big Bopper” Richardson are killed when their chartered Beechcraft Bonanza plane crashes in Iowa a few minutes after takeoff from Mason City on a flight headed for Moorehead, Minnesota. Investigators blamed the crash on bad weather and pilot error. Holly and his band, the Crickets, had just scored a No. 1 hit with “That’ll Be the Day.”

After mechanical difficulties with the tour bus, Holly had chartered a plane for his band to fly between stops on the Winter Dance Party Tour. However, Richardson, who had the flu, convinced Holly’s band member Waylon Jennings to give up his seat, and Ritchie Valens won a coin toss for another seat on the plane.

Crash

The plane took off at around 12:55 AM Central Time. Just after 1:00 AM Central Time, Mr. Hubert Dwyer, a commercial pilot and owner of the plane, observing from a platform outside the tower, “saw the tail light of the aircraft gradually descend until out of sight.”

Peterson had told Dwyer he would file a flight plan with Air Traffic Control by radio after departure. When he did not call the Air Traffic Control communicator with his flight plan, Dwyer requested that Air Traffic Control continue to attempt to establish radio contact, but all attempts were unsuccessful.

By 3:30 AM, when Hector Airport in Fargo, North Dakota, had not heard from Peterson, Dwyer contacted authorities and reported the aircraft missing.

Around 9:15 AM, Dwyer took off in another small plane to fly Peterson’s intended route. A short time later, he spotted the wreckage in a cornfield belonging to Albert Juhl, about five miles (8 km) northwest of the airport.

The Bonanza was at a slight downward angle and banked to the right when it struck the ground at around 170 miles per hour (270 km/h). The plane tumbled and skidded another 570 feet (170 m) across the frozen landscape before the crumpled ball of wreckage piled against a wire fence at the edge of Juhl’s property. The bodies of Holly and Valens lay near the plane, Richardson was thrown over the fence and into the cornfield of Juhl’s neighbor Oscar Moffett, and the body of Peterson remained entangled inside the plane’s wreckage. Surf Ballroom manager Carroll Anderson, who drove the musicians to the airport and witnessed the plane’s takeoff, made positive identifications of the musicians.

All four had died instantly from “gross trauma” to the brain, the county coroner Ralph Smiley declared. Holly’s death certificate detailed the multiple injuries which show that he surely died on impact:

The body of Charles H. Holley was clothed in an outer jacket of yellow leather-like material in which four seams in the back were split almost full length. The skull was split medially in the forehead and this extended into the vertex region. Approximately half the brain tissue was absent. There was bleeding from both ears, and the face showed multiple lacerations. The consistency of the chest was soft due to extensive crushing injury to the bony structure.[…] Both thighs and legs showed multiple fractures.

Investigators concluded that the crash was due to a combination of poor weather conditions and pilot error. Peterson, working on his Instrument Rating, was still taking flight instrumentation tests and was not yet rated for flight into weather that would have required operation of the aircraft solely by reference to his instruments rather than by means of his own vision. The final Civil Aeronautics Board report noted that Peterson had taken his instrument training on airplanes equipped with an artificial horizon attitude indicator and not the far-less-common Sperry Attitude Gyro on the Bonanza. Critically, the two instruments display the aircraft pitch attitude in the exact opposite manner; therefore, the board thought that this could have caused Peterson to think he was ascending when he was in fact descending. They also found that Peterson was not given adequate warnings about the weather conditions of his route, which, given his known limitations, might have caused him to postpone the flight.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Follow us on Twitter @StarsHollowGzt

The Sunday Talking Heads:

Up with Chris Hayes: Joining Chris will be Joseph Stiglitz (@joestiglitz), author of “The Price of Inequality: How Today’s Divided Society Endangers Our Future” and winner of the Nobel Prize in economics; Julianne Malveaux (@drjlastword), president emeritus of Bennett College for Women, contributing writer at Essence magazine; Michelle Goldberg (@michelleinbklyn), author of “The Means of Reproduction: Sex, Power and the Future of the World;” Kiron Skinner (kironmemo.com), research fellow at the Hoover Institution and director of Carnegie Mellon University’s Center for International Relations and Politics; Michael Hastings (@mmhastings), BuzzFeed Correspondent and Rolling Stone Contributing Editor; Barbara Slavin (@barbaraslavin1), a senior fellow at the Atlantic Council’s South Asia Center and Washington correspondent for Al-Monitor dot com, a new website devoted to news from and about the Middle East; Ali Gharib (@ali_gharib), a Senior Editor for The Daily Beast‘s Middle East blog, Open Zion; Michael Brendan Dougherty (@michaelbd), national correspondent for The American Conservative; Dylan Glenn, former Special Assistant to President George W. Bush and now Managing Director of Guggenheim Partners, a financial services firm; Joe Weisenthal (@thestalwart), deputy editor at BusinessInsider.com; and Edward Conard, author of “Unintended Consequences: Why Everything You’ve Been Told About the Economy is Wrong,” and a former partner at Bain Capital.

This Week with George Stephanopolis: George Stephanopoulos interviews the gatekeeper of the president’s agenda, Senate Majority Leader Harry Reid (D-NV) and controversial education reformer Michelle Rhee.

This weeks panel guests are ABC News political analyst Matthew Dowd; Univision anchor Jorge Ramos; Nobel Prize-winning economist and New York Times columnist Paul Krugman; former Hewlett-Packard CEO Carly Fiorina; and Republican Rep. Lou Barletta of Pennsylvania.

Face the Nation with Bob Schieffer: Mr. Schieffer’s guests this week are National Football League faces with NFL Commissioner Roger Goodell. ;CBS Sports’ Jim Nantz, Phil Simms and Shannon Sharpe.

The Chris Matthews Show: this week’s guests are Michael Duffy, TIME Magazine Assistant Managing Editor;

Katty Kay, BBC Washington Correspondent; Howard Fineman The Huffington Post Senior Political Editor; and Annie Lowrey, The New York Times

Economic Policy Reporter.

Meet the Press with David Gregory: Guests on the weeks MTP are Secretary of Defense Leon Panetta and the Chairman of the Joint Chiefs of Staff General Martin Dempsey outline the challenges that lay ahead for the country’s armed forces and for the next Defense secretary. Bob Costas talks NFL ahead of the big game.

The roundtable weighs in on the political battle over the president’s pick to head the Pentagon with former White House Press Secretary Robert Gibbs; Chairman of the Faith and Freedom coalition Ralph Reed; former National Hispanic Co-Chair for John McCain’s 2008 presidential campaign, Ana Navarro; and the New York Times’ David Brooks.

State of the Union with Candy Crowley: Ms. Crowley’s guests are Defense Secretary Leon Panetta and Joint Chiefs Chairman Gen. Martin Dempsey; Obama policy adviser Melody Barnes, former Labor secretary Elaine Chao, Time magazine’s Michael Duffy and The Hill‘s A.B. Stoddard; Super Bowl XL MVP Hines Ward; and former football player and Fmr. Sen. George Allen.