While Secretary of the Treasury Timothy Geithner was packing up his office making way for the next puppet of the banks and Wall Street, Jack Lew, the top executives of major companies that were bailed out by the tax payers were getting their pay-offs.

The Office of the Special Inspector General for the Trouble Asset Relief Program — which keeps tabs on taxpayer bailouts — singled out for blame “pay czar” Patricia Geoghegan, the Treasury official tasked with reining in excessive pay increases for executives at bailed-out companies. [..]

Executives, the report contends, got pay bumps in 2012 for leading their bailed-out companies in profitable directions. But they also got raises when their units performed poorly: An executive at Ally’s residential mortgage unit saw his paycheck rise in 2012 even though Treasury knew that division of the bank was about to file for bankruptcy. The executive, Treasury said, was deemed “critical to successful restructuring.”

Another executive, at GM, saw a $50,000 pay increase not because of good performance, Geoghegan is quoted in the report as saying, but because “GM wanted to retain the employee and ‘do a little extra for him.'”

At AIG, which had by far the best remunerated executives of the three companies in 2012, the top 25 earners made nearly $108 million combined. CEO Robert Benmosche’s pay was $10.5 million. (AIG repaid its government loans in late 2012 and is no longer under Treasury oversight.)

The SIGTARP, which keeps tabs on taxpayer bailouts, is supposed to keep a lid on excessive pay for the CEO’s.  Ms. Geoghegan relinquished her authority to the companies involved to determine the size of pay increases. The result was that all but one of the 69 companies SIGTARP oversees received an annual payout of at least $1 million, and nearly a quarter received pay packages in excess of $5 million.

And the Treasury Department has sone nothing to fix the economy because under Timothy Geithner it was too busy bailing out Wall Street and the banks:

(T)he economy has already lost more than $7 trillion in output ($20,000 per person) compared with what the Congressional Budget Office projected in January of 2008. We will probably lose at least another $4 trillion before the economy gets back to anything resembling full employment. And millions of people have seen their lives turned upside down by their inability to get jobs, being thrown out of their homes, or their parents’ inability to get a job. And this is all because of the folks in Washington’s inability to manage the economy.

But the Wall Street banks are bigger and fatter than ever. As a result of the crisis, many mergers were rushed through that might have otherwise been subject to serious regulatory scrutiny. For example, J.P. Morgan was allowed to take over Bear Stearns and Washington Mutual, two huge banks that both faced collapse in the crisis. Bank of America took over Merrill Lynch and Countrywide. By contrast, there can be little doubt that without the helping hand of Timothy Geithner, most or all of the Wall Street banks would have been sunk by their own recklessness.

There is one other hoary myth that needs to be put to rest as Timothy Geithner heads off to greener pastures. The claim that we made money on the bailout is one of those lines that should immediately discredit the teller. We made money on the loans in the same way that if the government issued mortgages at 1 percent interest it would make money, since the vast majority of the mortgages would be repaid.

The TARP money and other bailout loans were given to banks at way below market interest rates at a time when liquidity carried an enormous premium. Serious people know this, and the people who don’t are not worth listening to. It was a massive giveaway, as the Congressional Oversight Panel determined at the time.

Meanwhile, states are refusing to raise minimum wages to keep the many workers from falling deeper into poverty.

“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: Now We’re Talking

The thousand-mile journey to comprehensive immigration reform has begun, as you might expect for Washington, with a single memo. Eight senators, four from each party, released it on Monday: a statement of principles behind a deal to overhaul the system in one big bill. It calls for more border and workplace enforcement, more visas for needed workers and legalization – with a path to citizenship – for 11 million undocumented immigrants.

The statement lacks specifics and leaves a lot of room for disappointment and retreat. But what’s encouraging is that it exists at all. No longer does the immigration debate consist of two groups yelling across a void. No longer is the discussion hopelessly immobilized by Republicans who have categorically rejected any deal that includes any hint of “amnesty.”

Richard (RJ) Eskow: As Federal Prosecutors Cash In, Big Bankers Go Unpunished

We needed heroes after the financial crisis. Instead we got bureaucrats, compromisers, and perhaps something much worse. Federal law enforcement officials, our “thin gray line” against banker crime, were charged with restoring the balance of justice and reducing the threat of future crises. Seems they had other things on their minds.

Now the Administration’s first-term posse is riding off into the sunset. The most visible departure is Deputy Attorney General Lanny Breuer. Remember those submissive or avaricious sheriffs in the old Westerns, the ones who were always letting the bad guys run wild ?  “Sorry, Ma’am, I’d like to help you and the boy but there ain’t nothin’ I can do.”  That’s Breuer, whose shattered credibility and extreme reluctance to prosecute has become the stuff of legend.  

But he’s not the only one. Meet the senior partners in a firm that be more aptly named “Covington, Burling, and Justice.”

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.

January 29 is the 29th day of the year in the Gregorian calendar. There are 336 days remaining until the end of the year (337 in leap years).

On this day in 1845, Edgar Allan Poe’s famous poem “The Raven,” beginning “Once upon a midnight dreary,” is published on this day in the New York Evening Mirror.

“The Raven” is a narrative poem by American writer Edgar Allan Poe, first published in January 1845. It is often noted for its musicality, stylized language, and supernatural atmosphere. It tells of a talking raven’s mysterious visit to a distraught lover, tracing the man’s slow descent into madness. The lover, often identified as being a student, is lamenting the loss of his love, Lenore. Sitting on a bust of Pallas, the raven seems to further instigate his distress with its constant repetition of the word “Nevermore”. The poem makes use of a number of folk and classical references.

Poe claimed to have written the poem very logically and methodically, intending to create a poem that would appeal to both critical and popular tastes, as he explained in his 1846 follow-up essay “The Philosophy of Composition”. The poem was inspired in part by a talking raven in the novel Barnaby Rudge: A Tale of the Riots of ‘Eighty by Charles Dickens. Poe borrows the complex rhythm and meter of Elizabeth Barrett‘s poem “Lady Geraldine’s Courtship”, and makes use of internal rhyme as well as alliteration throughout.

Pres. Barack Obama nominated former US Attorney of the Southern District of New York, Mary Jo White, to head the troubled Securities and Exchange Commission. The announcement comes a day after the damning PBS Fraontline expose of the Department of Justice’s failure to prosecute bank fraud and the resignation of Lanny Breuer, the head of the DOJ criminal division. Ms. White certainly has a fine reputation of being a tough prosecutor during her tenure as US Attorney, she managed something Rudi Guiliani failed to do, finally putting notorious mobster John “The Teflon Don” Gotti behind bars. However, in the 10 years since she left that office, Ms. White has worked diligently to protect the heads of the “Too Big To Fail” banks. In his Salon article, David Sirota called her a “Wall Street enabler” and goes on to enumerate the evidence:

Matt Taibbi, Rolling Stone contributing editor, in his article “Why Isn’t Wall Street in Jail,” recounts how during her tenure as head of litigation at the New York law firm Debevoise & Plimpton, Ms. White defended some very high profile bankers and played a key role in the “squelching of then-SEC investigator Gary Aguirre’s investigation into an insider trading incident involving future Morgan Stanley CEO John Mack”

   The deal looked like a classic case of insider trading. But in the summer of 2005, when Aguirre told his boss he planned to interview Mack, things started getting weird. His boss told him the case wasn’t likely to fly, explaining that Mack had “powerful political connections.”…

   Aguirre also started to feel pressure from Morgan Stanley, which was in the process of trying to rehire Mack as CEO … It didn’t take long for Morgan Stanley to work its way up the SEC chain of command. Within three days, another of the firm’s lawyers, Mary Jo White, was on the phone with the SEC’s director of enforcement…

   Pause for a minute to take this in. Aguirre, an SEC foot soldier, is trying to interview a major Wall Street executive – not handcuff the guy or impound his yacht, mind you, just talk to him. In the course of doing so, he finds out that his target’s firm is being represented…by the former U.S. attorney overseeing Wall Street, who is going four levels over his head to speak directly to the chief of the SEC’s enforcement division…

   Aguirre didn’t stand a chance. A month after he complained to his supervisors that he was being blocked from interviewing Mack, he was summarily fired, without notice. The case against Mack was immediately dropped: all depositions canceled, no further subpoenas issued.

In February of 2012 on a panel at a New York University School of Law even, Ms White expressed her doubts about whether banks had committed crimes ahead of the financial crisis stating that care should be taken to “distinguish what is actually criminal and what is just mistaken behavior, what is even reckless risk-taking, and not bow to the frenzy.”

Another point of conflict is Ms. White’s husband. Yves Smith at naked capitalism notes that “John White, who headed the SEC’s corporate finance section under Chris Cox and was heavily involved in detailed Sarbanes Oxley rulemaking, and now that he is back at Cravath, has been lobbying against regulation.”

Nor does Ms. White have a background in finance or the “inner workings of the trading system:”

Although she has represented many executives accused of financial crimes, White is not an expert on the inner workings of trading systems, a lack of knowledge that may not serve her well as the SEC struggles to keep up with rapid changes in increasingly complex financial markets.

“The problem with the SEC is that they don’t seem to have a grip on” high-frequency trading and other major issues affecting modern financial markets, said Joe Saluzzi, co-head of equity trading at independent brokerage Themis Trading and a frequent critic of high-speed trading. “We’re concerned about cleaning up the market, and we need the SEC to take the lead here.”

Her background puts to question how aggressively White might prosecute financial fraud and enforce new rules under the Dodd-Frank financial reform law — most of which have not yet been adopted by the SEC.

Matt Taibbi recounts a conversation he had with a head fund manager regarding Ms. White’s:

His point about White is simple and it makes a lot of sense. She may very well at one time have been a tough prosecutor. But she dropped out and made the move a lot of regulators make – leaving government to make bucketloads of money working for the people she used to police. “That move, being a tough prosecutor, then going to work defending scumbags, you can only make that move once,” was his point. “You can’t go back again, you know what I mean?”

Think about it: how do you go back and sit in S.E.C.’s top spot after all of those years earning millions as a partner for a firm that represented Morgan Stanley, Bank of America, Goldman, Sachs, Deutsche, Chase, and AIG, among others? Think that fact that his firm has retained her firm has anything to do with Jamie Dimon coming out and saying that White is the “perfect choice” to run the S.E.C.? Think of all the things she knows but can’t act upon. Could she really turn around and target Morgan Stanley after being their lawyer for all those years?

Ms. White is not only another example of the government’s revolving door from public service to private practice back to public service but of Pres. Obama’s signal to Wall Street that they are safe to continue with business as usual. Mary Jo White is the fox in the hen house.  

“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

Paul Krugman: Makers, Takers, Fakers

Republicans have a problem. For years they could shout down any attempt to point out the extent to which their policies favored the elite over the poor and the middle class; all they had to do was yell “Class warfare!” and Democrats scurried away. In the 2012 election, however, that didn’t work: the picture of the G.O.P. as the party of sneering plutocrats stuck, even as Democrats became more openly populist than they have been in decades.

As a result, prominent Republicans have begun acknowledging that their party needs to improve its image. But here’s the thing: Their proposals for a makeover all involve changing the sales pitch rather than the product. When it comes to substance, the G.O.P. is more committed than ever to policies that take from most Americans and give to a wealthy handful.

Glenn Greenwald: Kiriakou and Stuxnet: the danger of the still-escalating Obama whistleblower war

The only official punished for the illegal NSA program was the one who discussed it. The same is now true of torture

This Obama whistleblower war has nothing to do with national security. It has nothing to do with punishing those who harm the country with espionage or treason.

It has everything to do with destroying those who expose high-level government wrongdoing. It is particularly devoted to preserving the government’s ability to abuse its power in secret by intimidating and deterring future acts of whistleblowing and impeding investigative journalism. This Obama whistleblower war continues to escalate because it triggers no objections from Republicans (who always adore government secrecy) or Democrats (who always adore what Obama does), but most of all because it triggers so few objections from media outlets, which – at least in theory – suffer the most from what is being done.

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.

January 28 is the 28th day of the year in the Gregorian calendar. There are 337 days remaining until the end of the year (338 in leap years).

On this day in 1916, President Woodrow Wilson nominates Louis Brandeis to the Supreme Court. After a bitterly contested confirmation, Brandeis became the first Jewish judge on the Supreme Court.

A graduate of Harvard Law School, Brandeis quickly earned a reputation in Boston as the people’s attorney for taking on cases pro bono. Brandeis advocated progressive legal reform to combat the social and economic ills caused in America by industrialization. He met Woodrow Wilson, who was impressed by Brandeis’ efforts to hold business and political leaders accountable to the public, during Wilson’s 1912 campaign against Theodore Roosevelt. Brandeis’ early legal achievements included the establishment of savings-bank life insurance in Massachusetts and securing minimum wages for women workers. He also devised what became known as the Brandeis Brief, an appellate report that analyzed cases on economic and social evidence rather than relying solely on legal precedents.

Louis Dembitz Brandeis (November 13, 1856 – October 5, 1941) was an Associate Justice on the Supreme Court of the United States from 1916 to 1939. He was born in Louisville, Kentucky, to Jewish parents who had emigrated from Europe. He enrolled at Harvard Law School, graduating at the age of twenty with the highest grade average in the college’s history.

Brandeis settled in Boston where he became a recognized lawyer through his work on social causes that would benefit society. He helped develop the “right to privacy” concept by writing a Harvard Law Review article of that title, and was thereby credited by legal scholar Roscoe Pound as having accomplished “nothing less than adding a chapter to our law”. Years later, a book he published, entitled Other People’s Money, suggested ways of curbing the power of large banks and money trusts, which partly explains why he later fought against powerful corporations, monopolies, public corruption, and mass consumerism, all of which he felt were detrimental to American values and culture. He also became active in the Zionist movement, seeing it as a solution to the “Jewish problem” of antisemitism in Europe and Russia, while at the same time being a way to “revive the Jewish spirit.”

When his family’s finances became secure, he began devoting most of his time to public causes and was later dubbed the “People’s Lawyer.” He insisted on serving on cases without pay so that he would be free to address the wider issues involved. The Economist magazine calls him “A Robin Hood of the law.” Among his notable early cases were actions fighting railroad monopolies; defending workplace and labor laws; helping create the Federal Reserve System; and presenting ideas for the new Federal Trade Commission (FTC). He achieved recognition by submitting a case brief, later called the “Brandeis Brief,” which relied on expert testimony from people in other professions to support his case, thereby setting a new precedent in evidence presentation.

In 1916, President Woodrow Wilson nominated Brandeis to become a member of the U.S. Supreme Court. However, his nomination was bitterly contested, partly because, as Justice William O. Douglas wrote, “Brandeis was a militant crusader for social justice whoever his opponent might be. He was dangerous not only because of his brilliance, his arithmetic, his courage. He was dangerous because he was incorruptible. . . [and] the fears of the Establishment were greater because Brandeis was the first Jew to be named to the Court.” He was eventually confirmed by the Senate by a vote of 47 to 22 on June 1, 1916, and became one of the most famous and influential figures ever to serve on the high court. His opinions were, according to legal scholars, some of the “greatest defenses” of freedom of speech and the right to privacy ever written by a member of the high court.

Since the losing party never gets to pick the president, Republican legislators propose allocating electoral college votes by congressional district.

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.

January 27 is the 27th day of the year in the Gregorian calendar. There are 338 days remaining until the end of the year (339 in leap years)

On this day in 1888, the National Geographic Society is founded in Washington, D.C., for “the increase and diffusion of geographical knowledge.”

The 33 men who originally met and formed the National Geographic Society were a diverse group of geographers, explorers, teachers, lawyers, cartographers, military officers and financiers. All shared an interest in scientific and geographical knowledge, as well as an opinion that in a time of discovery, invention, change and mass communication, Americans were becoming more curious about the world around them. With this in mind, the men drafted a constitution and elected as the Society’s president a lawyer and philanthropist named Gardiner Greene Hubbard. Neither a scientist nor a geographer, Hubbard represented the Society’s desire to reach out to the layman.

History

The National Geographic Society began as a club for an elite group of academics and wealthy patrons interested in travel. On January 13, 1888, 33 explorers and scientists gathered at the Cosmos Club, a private club then located on Lafayette Square in Washington, D.C., to organize “a society for the increase and diffusion of geographical knowledge.” After preparing a constitution and a plan of organization, the National Geographic Society was incorporated two weeks later on January 27. Gardiner Greene Hubbard became its first president and his son-in-law, Alexander Graham Bell, eventually succeeded him in 1897 following his death. In 1899 Bell’s son-in-law Gilbert Hovey Grosvenor was named the first full-time editor of National Geographic Magazine and served the organization for fifty-five years (1954), and members of the Grosvenor family have played important roles in the organization since.

Bell and his son-in-law, Grosvenor, devised the successful marketing notion of Society membership and the first major use of photographs to tell stories in magazines. The current Chairman of the Board of Trustees of National Geographic is Gilbert Melville Grosvenor, who received the Presidential Medal of Freedom in 2005 for the Society’s leadership for Geography education. In 2004, the National Geographic Headquarters in Washington, D.C. was one of the first buildings to receive a “Green” certification from Global Green USA The National Geographic received the prestigious Prince of Asturias Award for Communications and Humanity in October 2006 in Oviedo, Spain.

“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 Sunday will be: Ambassador Swanee Hunt, the former ambassador to Austria from 1993 to 1997, now the Elizabeth Roosevelt Lecturer in Public Policy at Harvard University’s Kennedy School of Government; Robin Wright (@wrightr), joint fellow at the U.S. Institute of Peace and the Woodrow Wilson International Center; Horace Campbell, professor of African politics, African-American studies and political science at Syracuse University; Joshua Trevino (@jstrevino), vice president of external public relations at the Texas Public Policy Foundation; Vince Warren (@VinceWarren), executive director of the Center for Constitutional Rights; Phyllis Bennis, director of the New Internationalism Project at the Institute for Policy Studies; and Adam Serwer (@AdamSerwer), reporter and blogger for Mother Jones.

This Week with George Stephanopolis: Sunday’s guests on “This Week” are Foreign Relations Committee members Sen. John McCain (R-AZ) and Sen. Robert Menendez (D-NJ).

“Zero Dark Thirty” screenwriter and producer Mark Boal and Atlantic national correspondent Mark Bowden, best-selling author of “Blackhawk Down,” discuss the controversy over the Oscar-nominated film’s depiction of so-called enhanced interrogation in the hunt for Osama bin Laden.

The  roundtable debates all the week’s politics, with ABC News’ George Will; Rep. David Schweikert (R-AZ); Democratic strategist and ABC News contributor Donna Brazile; NPR “Morning Edition” host Steve Inskeep; and New Republic owner and publisher Chris Hughes, who interviewed President Obama for an Oval Office exclusive hitting newsstands next week.  

Face the Nation with Bob Schieffer: Mr. Schieffer’s guests are Sen. Dianne Feinstein (D-CA); New York City Police Commissioner Ray Kelly; former Republican Speaker of the House Newt Gingrich and Rep. Marsha Blackburn (R-TN) who will discuss gun control.

A panel looks at the big news this week: Defense Secretary Leon Panetta’s announcement lifting the ban on women in combat, the three-month debt ceiling deal which passed the House Wednesday, gun control and more with former Romney Campaign Senior Adviser Kevin Madden, Obama Deputy Campaign Manager Stephanie Cutter, The New York Times‘ David Sanger and The Washington Post‘s David Ignatius.

The Chris Matthews Show: This week’s guests are Chuck Todd, NBC News Chief White House Correspondent; Kelly O’Donnell, NBC News Capitol Hill Correspondent; Kathleen Parker, The Washington Post Columnist; and Chris Frates, National Journal Congressional Correspondent.

Meet the Press with David Gregory: Former Republican Vice Presidential Nominee Rep. Paul Ryan (R-WI) sits down exclusively with David Gregory for his first live interview since the election.

The roundtable guests are incoming President of the Heritage Foundation, former Senator Jim DeMint (R-SC); President and CEO of the NAACP Ben Jealous; Washington Post Associate Editor Bob Woodward; NBC’s Chief Foreign Affairs Correspondent Andrea Mitchell; and NBC News Special Correspondent Ted Koppel.

State of the Union with Candy Crowley: Ms. Crowley’s guests are retired Gens. Stanley McChrystal and Michael Hayden; Sen. Dianne Feinstein (D-CA);  Gov. Bob McDonnell (R-VA), Gov. Scott Walker (R-WI), Saratoga Springs, Utah Mayor Mia Love (R) and former Commerce Secretary Carlos Gutierrez.

The White House announced a National Day of Civic Hacking, June 1 – 2, 2013, as the internet continues to mourn the hacker and activist, Aaron Swartz, who died of suicide at age 26. Aaron’s partner Taren Stinebrickner-Kauffman, executive director and founder of SumofUs.org joins host Chris Hayes; Lawrence Lessig, Roy L. Furman Professor of Law at Harvard Law School; Susan Crawford, professor for the Center on Intellectual Property & Information Law Program at Carodozo School of Law; and Ta-Nehisi Coates, senior editor for The Atlantic on the Up with Chris panel to discuss the legacy of Aaron Swartz.