BoA: The Heat Is On

So yesterday I highlighted Black and Wray’s counter response to Bank of America and today Part 2 is available, but before I get to that I’d like to provide some context.

You’ll remember that PIMCO, Blackrock, Freddie Mac, and The Federal Reserve Bank of New York had requested that Bank of America repurchase some $47 Billion Mortgage Backed Securities that violated the performance and disclosure provisions of the contracts they were sold under.  You might also recognize these names as financial players every bit as big and powerful as Bank of America itself.

Well, yesterday BoA rejected that request.  As Atrios says- It’s On.

But you shouldn’t think that Bank of America is the only one with these problems.  Although it is the biggest, JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc, US Bancorp and PNC Financial Services Group have $43 Billion or more in exposure to the same types of losses.

While some of Black and Wray’s Part 2 touches on that exposure, what it’s mostly about is the story of Bank of America’s purchase of Countrywide Financial.

An interesting factoid about BoA’s purchase of Countrywide (from the Jonathan Weil, Bloomberg article cited yesterday)-

Here’s how Bank of America allocated the purchase price for that deal. First, it determined that the fair value of the liabilities at Countrywide exceeded the mortgage lender’s assets by $200 million. Then it recorded $4.4 billion of goodwill, a ledger entry representing the difference between Countrywide’s net asset value and the purchase price.

That’s right. Countrywide’s goodwill supposedly was worth more than Countrywide itself. In other words, Bank of America paid $4.2 billion for the company, even though it thought the value there was less than zero.

Since completing that acquisition, Bank of America has dropped the Countrywide brand. The company’s home-loan division has reported $13.5 billion of pretax losses. Yet Bank of America still hasn’t written off any of its Countrywide goodwill.

What genius!  Surely these Masters of the Universe are worth every penny they’re paid, but, it being a free market capitalist system and all, I can’t help myself from pointing out that I personally am willing to lose $17.7 Billion for a much more reasonable rate of compensation.  Since they’re great believers in the efficiency of markets I expect an offer any time.

Let’s Set the Record Straight on Bank of America, Part 2: Eliminating Foreclosure Fraud

William K. Black and L. Randall Wray, The Huffington Post

Posted: November 5, 2010 01:23 PM

Bank of America did not purchase Countrywide for the good of the public. It purchased a notorious lender to feed the ego of their CEO, who wanted to run the biggest bank in America rather than the best bank in America. They certainly knew at the time of the purchase that is was buying an institution whose business model was based on fraud, and it had to have known that a substantial portion of Countrywide’s assets were toxic and fraudulent (since Bank of America’s own balance sheet contained similar assets and it could reasonably expect that Countrywide’s own standards were even worse). The response does not contest the depth of the bank’s insolvency problems should it be required to recognize its liability for losses caused by its frauds.



Bank of America’s response to our articles ignores its foreclosure fraud, which we detailed in our articles. News reports claim that the bank sent a 60 person “due diligence” team into Countrywide for at least four weeks. The Countrywide sales staff were notorious, having prompted multiple fraud investigations by the SEC and various State attorneys general. The SEC fraud complaint against Countrywide emphasized the games it played with the computer system. Countrywide had a terrible reputation for its nonprime lending. Nonprime loans were already collapsing at the time of the due diligence, the FBI had warned about the epidemic of mortgage fraud, and the lending profession’s anti-fraud firm had warned that liar’s loans were endemically fraudulent. Is it really possible that Bank of America’s due diligence team missed all of this and that the CEO thought even months later that the Countrywide lending personnel and Countrywide’s computer systems were exceptionally desirable assets?



As we explained, fraud begets fraud. Bank of America created over $4 billion in “goodwill” and placed it on its books as an asset when it paid money to acquire Countrywide at a time when it was deeply insolvent on a market value basis. Instead of acquiring an asset, they got thousands of fraudulent employees and officers, a failed computer system and catastrophic losses. So, we have a question for Bank of America, its auditors, and the SEC: why haven’t you written off that entire goodwill account?

And why aren’t people in jail or bankrupted by shareholder and bondholder lawsuits (yet)?

Obama’s Problem Simply Defined: It Was the Banks

James K. Galbraith, The Huffington Post

Posted: November 5, 2010 04:16 PM

(O)ne cannot defend the actions of Team Obama on taking office. Law, policy and politics all pointed in one direction: turn the systemically dangerous banks over to Sheila Bair and the Federal Deposit Insurance Corporation. Insure the depositors, replace the management, fire the lobbyists, audit the books, prosecute the frauds, and restructure and downsize the institutions. The financial system would have been cleaned up. And the big bankers would have been beaten as a political force.

Team Obama did none of these things. Instead they announced “stress tests,” plainly designed so as to obscure the banks’ true condition. They pressured the Federal Accounting Standards Board to permit the banks to ignore the market value of their toxic assets. Management stayed in place. They prosecuted no one. The Fed cut the cost of funds to zero. The President justified all this by repeating, many times, that the goal of policy was “to get credit flowing again.”



With free funds, the banks could make money with no risk, by lending back to the Treasury. They could boom the stock market. They could make a mint on proprietary trading. Their losses on mortgages were concealed — until the fact came out that they’d so neglected basic mortgage paperwork, as to be unable to foreclose in many cases, without the help of forged documents and perjured affidavits.

But new loans? The big banks had given up on that. They no longer did real underwriting. And anyway, who could qualify? Businesses mostly had no investment plans. And homeowners were, to an increasing degree, upside-down on their mortgages and therefore unqualified to refinance.



To counter calls for more action, Team Obama produced sunny forecasts. Their program was right-sized, because anyway unemployment would peak at 8 percent in 2009. So Larry Summers said. In making that forecast, the Obama White House took responsibility for the entire excess of joblessness above eight percent. They made it impossible to blame the ongoing disaster on George W. Bush. If this wasn’t rank incompetence, it was sabotage.

Remember “Recovery Summer(s)“?  Nothing has changed.  And until people go to jail for their fraud and the “To Big To Fail” Banks are placed into FDIC Receivership, their incompetent management tossed out on their asses, and broken up, nothing will.

Barack Hussein Obama and the Democratic Party have no one to blame but themselves.

Morning Shinbun Saturday November 6




Saturday’s Headlines:

Investigators Zero in on Massive Art Forgery Scandal

USA

Republicans map out their agenda of less

n Wealthy hopefuls fail to cash i

Europe

Iraqi prisoners were abused at ‘UK’s Abu Ghraib’, court hears

Outspoken French Muslim leader’s views inspire respect and hatred

Middle East

General writes to troops: follow Israel’s moral code

Al-Qaeda claims parcel bomb plot

Asia

Burmese junta pushes people to the polls

Union leader warns of violence during G20 protests in South Korea

Africa

Greens angered over C4 claims they ’caused starvation’

Latin America

Haiti prime minister warns of triple disaster as hurricane Tomas hits

Pace of U.S. bank failures not seen in 2 decades

Total of 143 financial institutions shut in 2010 surpasses last year’s high

By MARCY GORDON

WASHINGTON – Regulators shut down four more banks Friday, bringing the 2010 total to 143, topping the 140 shuttered last year and the most in a year since the savings-and-loan crisis two decades ago.

The Federal Deposit Insurance Corp. took over K Bank, based in Randallstown, Maryland, with $538.3 million in assets, and Pierce Commercial Bank, based in Tacoma, Washington, with $221.1 million in assets. The FDIC also seized two California banks: Western Commercial Bank in Woodland Hills, with $98.6 million in assets, and First Vietnamese American Bank in Westminster, with assets of $48 million.

Investigators Zero in on Massive Art Forgery Scandal

The Hippy and the Expressionists

By SPIEGEL Staff

Flickering torches lit the path up to the villa. The guests were led through a modernistic gate, past a glass-covered swimming pool and on to a series of minimalist bungalows, the facades of which were freshly clad in Siberian larch. Champagne was served out of Magnum bottles. A Flamenco band had been brought in from Spain. Wolfgang Beltracchi, the owner of the property, stood in front of his studio welcoming the guests as they arrived, long blond hair hanging down to his shoulders.

Beltracchi’s villa is situated in the hills above Freiburg among the city’s high society: professors, lawyers and managing directors.

USA

Republicans map out their agenda of less



By Lori Montgomery

Washington Post Staff Writer

Saturday, November 6, 2010; 12:33 AM


Republicans are mapping an agenda for the new Congress that calls for a radical reduction in government spending, a hard-line stance against new taxes and a “sustained” battle against federal regulators – all aimed at easing the concerns of voters desperate for jobs and anxious about the soaring national debt.

The path charted in the party’s “Pledge to America” and in a new blueprint released this week by Rep. Eric Cantor (R-Va.), the No. 2 Republican in the House, is certain to provoke clashes with the White House. It is already stirring dissension among Republicans who say it doesn’t go far enough. Less certain is its ability to make progress on the nation’s top economic priorities, particularly job creation.

Wealthy hopefuls fail to cash in



Dan Eggen

November 6, 2010


The US congressional midterm elections have proved that money can’t buy a candidate political happiness most of the time.

Tuesday’s elections featured an unusually large crop of moguls who sought to ease their way into power by pouring millions of their own dollars into their campaigns.

In most cases, they failed spectacularly.

Advertisement: Story continues below

The most obvious example came in the California gubernatorial election, where the Republican Meg Whitman, the former president and chief executive officer of eBay, spent $US175 million of her $1.3 billion fortune to lose badly to the Democratic former governor Jerry Brown. That works out to about $US57 for each of the roughly 3 million votes she won.

Europe

Iraqi prisoners were abused at ‘UK’s Abu Ghraib’, court hears

Detainees were starved, deprived of sleep and threatened with execution at JFIT facilities near Basra, high court told

Ian Cobain

The Guardian, Saturday 6 November 2010


Evidence of the alleged systematic and brutal mistreatment of Iraqi prisoners at a secret British military interrogation centre that is being described as “the UK’s Abu Ghraib” emerged yesterday during high court proceedings brought by more than 200 former inmates.

The court was told there was evidence that detainees were starved, deprived of sleep, subjected to sensory deprivation and threatened with execution at the shadowy facilities near Basra operated by the Joint Forces Interrogation Team, or JFIT.

It also received allegations that JFIT’s prisoners were beaten, forced to kneel in stressful positions for up to 30 hours at a time, and that some were subjected to electric shocks.

Outspoken French Muslim leader’s views inspire respect and hatred

The Irish Times – Saturday, November 6, 2010

RUADHÁN Mac CORMAIC

HASSEN CHALGHOUMI arrives, flanked by two plain-clothed police bodyguards and a small entourage, looking mildly embarrassed to find himself amidst such a fuss. He must be accustomed to it by now.

Tall, mild-mannered and reserved, the 39-year-old imam of Drancy mosque, north of Paris, has become one of France’s most prominent Muslim leaders.

His public declarations of support for Nicolas Sarkozy’s face veil ban, his work to improve relations with Jewish groups and his warnings about the rise of radical Islam in France have brought him the embrace of the French establishment – and death threats from Muslims whose wrath he has provoked. To the former, his stance speaks of courage and steel; to the latter, publicity-seeking opportunism and betrayal.

Middle East

General writes to troops: follow Israel’s moral code



Harriet Sherwood November 6, 2010

The Israeli military chief of staff has sent a letter outlining his ”personal thoughts on ethics” which will be read to every soldier under his command.

The letter comes in response to a campaign that has targeted the military prosecutor for bringing cases against troops accused of misconduct.

Lieutenant-General Gabi Ashkenazi sent it to all commanders with orders for it to be read to ”each and every soldier”.

Al-Qaeda claims parcel bomb plot  

Group’s Yemen wing says it was behind plan to hit US targets, and caused earlier Dubai air crash.

Last Modified: 06 Nov 2010  

Al-Qaeda in the Arabian Peninsula says it orchestrated a failed bomb plot on cargo headed for the US last month, and it also claimed responsibility for the crash of an aircraft in Dubai in September.

The claims were made in a statement published by the Yemen-based group on al-Qaeda-linked websites and subsequently translated by the SITE Intelligence Group on Friday.

SITE said that Al-Qaeda in the Arabian Peninsula (AQAP) called for more explosive parcels to “enlarge the circle of its application to include civilian aircraft in the West as well as cargo aircraft”.

Two bomb attempts in October were foiled by security services in the UK and Dubai, where parcels containing the explosives were in transit, having originating from Yemen.

Asia

Burmese junta pushes people to the polls

On the eve of sham elections, our correspondent in Rangoon finds a nation bitterly divided over the value of its votes

Saturday, 6 November 2010

Twenty-seven million Burmese were yesterday being exhorted to go to the polls in an election that is viewed by many as the national junta’s means of securing a new lease of life with a veneer of constitutional propriety.

Democracy campaigners have been bitterly split throughout the campaign on whether or not to dignify the process with their participation. But as the final preparations for the election went ahead, some prospective voters were steeling themselves to give the process a grudging endorsement..

Union leader warns of violence during G20 protests in South Korea

As demonstration organizers today revealed plans for their G20 protests next week in South Korea, an unprecedented security force of 50,000 police geared up.

By Donald Kirk, Correspondent / November 5, 2010

Seoul, South Korea

The chief of South Korea’s largest trade union professes a belief in nonviolence – but he offers no guarantees if police try to stop protests during next week’s G20 summit of world leaders here.

“Excessive [police] force will result in violence that nobody wants,” said Kim Young-hoon, president of the powerful Korean Confederation of Trade Unons, whose 600,000 members dominate motor vehicle plants, shipyards, and the government-owned national rail system.

Africa

Greens angered over C4 claims they ’caused starvation’  



By Daniel Howden, Africa Correspondent  Saturday, 6 November 2010

A Channel 4 documentary accusing the green movement of causing mass starvation in Africa by getting it wrong on genetically-modified food has been attacked as “malicious” and “ridiculous” by farm groups on the continent.

“What the Green Movement Got Wrong”, broadcast this week, by the same channel that aired the hugely controversial “Great Climate Change Swindle” suggests that the Western green consensus against GM foods had impoverished the southern hemisphere..

Latin America

Haiti prime minister warns of triple disaster as hurricane Tomas hits

With Haiti recovering from an earthquake and cholera outbreak as hurricane Tomas hit, Prime Minister Jean-Max Bellerive told the Monitor, ‘It’s just piling on us, just making bigger and bigger problems.’

By Isabeau Doucet, Contributor / November 5, 2010

Port-au-Prince, Haiti

Haitian Prime Minister Jean-Max Bellerive says his government is preparing for three simultaneous humanitarian disasters, as hurricane Tomas began dumping up to 10 inches of rain on the island today.

“It’s not like we had the earthquake, then cholera, and now a hurricane,” he told the Monitor in an interview Thursday at his private residence in Pétionville. “We still have the consequences of the earthquake, we are facing the cholera … and now we’re preparing for the hurricane coming, so it’s just piling on us, just making bigger andbigger problems.”

Ignoring Asia A Blog  

The House Across the Street

( – promoted by Translator, aka Dr. David W. Smith)

In case you missed this

Petition: Put Olbermann Back On The Air NOW!

Prime Time

No Friday Night Thurber tonight, or maybe ever again.  As you’ve no doubt heard by now Keith is suspended indefinitely because he made 3 campaign contributions.  On the other hand racist Nazi loving Patrick J. Buchanan who, as Atrios points out, made no less than 5 is still on the air.  If you need proof Craig Crawford is a total asshole I’m sure you’ll find it.

Premiers across the board.

Later-

Dave hosts Steve Martin and the Punch Brothers, Emily Deschanel.  Jon out rated Leno and Letterman, but only in the key demo.

Evening Edition

Evening Edition is an Open Thread

From Yahoo News Top Stories

1 Suicide attack at Pakistan mosque kills 61

by Lehaz Ali, AFP

1 hr 3 mins ago

AKHURWALL, Pakistan (AFP) – A suicide bomber destroyed a Pakistani mosque on Friday, killing 61 people during the main weekly prayers and leaving body parts under a collapsed roof and pulverised rubble.

The deadliest attack in two months in the country on the front line of the US-led war on Al-Qaeda was followed by a grenade assault on a second mosque in the same area which killed at least three.

Dozens of people were critically wounded and officials fear the toll from both attacks could rise.

2 Hundreds of thousands vulnerable as Tomas lashes Haiti

by Clarens Renois, AFP

36 mins ago

PORT-AU-PRINCE (AFP) – Hurricane Tomas lashed Haiti with fierce winds and rain Friday, leaving three people dead in flooding and threatening hundreds of thousands people hunkered down in flimsy canvas tent camps.

Although officials had urged mass evacuations, with the risk of mudslides and flooding from torrential downpours, many clung to their make-shift homes and their few prized possessions as they had no where else to go.

The American Red Cross reported that the tents and tarps that provide flimsy shelter to many in in Port-au-Prince appeared to have weathered the storm, thanks to disaster preparedness efforts.

3 Haitians urged to evacuate tent cities as storm comes

by Clarens Renois, AFP

Thu Nov 4, 7:11 pm ET

CORAIL-CESSELESSE, Haiti (AFP) – Haitian leaders urged many displaced in tent cities to evacuate Thursday as a deadly storm bore down on the quake-hit Caribbean nation, but thousands clung to their makeshift homes.

“My sisters and brothers, leave the zones that are at risk, I beg of you,” Prime Minister Jean-Max Bellerive said in a television address, flanked by his cabinet ministers.

“There will be rain and wind throughout the country. Don’t be stubborn. Leave if you are in a fragile shelter,” he said.

4 China leads criticism of US Fed policy move

AFP

Fri Nov 5, 12:40 pm ET

BRUSSELS (AFP) – A Federal Reserve decison to pump more cash into the struggling US economy got a chilly reception Friday from global economic powerhouses, where officials doubted its usefulness and warned it could even spark a fresh crisis.

China, Germany, Brazil and France all voiced reservations about the move, in which the Fed plans to inject another 600 billion dollars (422.5 billion euros) into the economy.

Through a process known as quantitative easing, the Fed will buy up US Treasury securities in a bid to get more cash into the hands of companies and consumers by making long-term borrowing cheaper.

5 US stimulus rings Asian alarm bells

by Danny McCord, AFP

Fri Nov 5, 8:23 am ET

HONG KONG (AFP) – China on Friday led an Asian backlash against measures by the United States to kickstart economy recovery, which have stoked concerns that a flood of loose money could destabilise regional economies.

The Federal Reserve said Wednesday it would pump 600 billion dollars into the economy through debt purchases — effectively printing money — to boost employment and growth.

But Asian nations fear the effects of extra cash pumping through the financial system — as traders seek a better return on their dollar than they would get in the West.

6 Obama hunts jobs in Asia mission

by Tangi Quemener, AFP

1 hr 2 mins ago

WASHINGTON (AFP) – US President Barack Obama left for Asia on Friday on a mission to pry open markets to ease the US unemployment crisis, even as new data showed a spurt in job creation — too late to save his Democrats in mid-term elections.

The Labor Department reported that 151,000 nonfarm jobs were created in October, much better than expected, adding the first jobs since May although the unemployment rate remained unchanged at 9.6 percent for the third month.

Obama called the figures encouraging, but reiterated that more needed to be done as he left for Asia just days after Republicans romped home in mid-term elections to retake control of the House of Representatives.

7 Obama leaves US election wreckage for Asia

by Stephen Collinson

Fri Nov 5, 12:55 pm ET

WASHINGTON (AFP) – US President Barack Obama on Friday left Washington and the wreckage of his Democratic Party’s election hammering for the refuge of foreign policy, setting off on a nine-day odyssey to Asia.

Obama, along with his wife Michelle, boarded his plane at Andrews Air Force Base outside Washington and headed to India with a brief refueling stop at Ramstein Air Force Base in Germany.

The trip will force Obama to suspend temporarily the early political positioning made necessary by the Republican seizure of the House of Representatives in Tuesday’s elections.

8 England can end All Black losing streak: Johnson

AFP

1 hr 51 mins ago

LONDON (AFP) – Martin Johnson believes England will have to produce the best performance of his reign if they are to have any chance of ending their seven-year losing streak against the All Blacks.

England go into Saturday’s showdown at Twickenham knowing that they have lost eight matches on the trot to New Zealand since scoring a famously hard-fought 2003 victory in the wind and rain of Wellington.

That win was one of only six victories by England over the All Blacks in 105 years, a daunting tally that few pundits expect to be improved this weekend.

9 Georgia ‘busts Russian spy ring’, outrages Moscow

by Michael Mainville, AFP

11:51 am ET

TBILISI (AFP) – Georgia said Friday it had dismantled a major spy ring for Russia and arrested 13 suspects including four Russian citizens, outraging Moscow two years after the ex-Soviet foes fought a brief war.

Georgian interior ministry spokesman Shota Utiashvili said the suspects, who included Georgian military officers, had been providing secret information on Georgia’s military to the Russian military’s foreign intelligence service, the GRU.

He said the ring had been smashed in a cloak-and-dagger operation that saw Georgian security services infiltrate the GRU through a former Soviet army officer working as a double agent and top secret Russian military codes broken.

10 Engine problems hit second Qantas aircraft

By Vivek Prakash and Michael Perry, Reuters

57 mins ago

SINGAPORE/SYDNEY (Reuters) – Engine trouble forced a Qantas Airways Ltd jet to make an emergency landing in Singapore on Friday, less than 48 hours after another of the Australian carrier’s aircraft had to land prematurely because its engine blew up.

The Sydney-bound Boeing 747-400 aircraft, with 412 people on board, returned to the airport 20 minutes after takeoff due to “an issue with one of its engines,” Qantas Airways Ltd said in a statement.

That came a day after a Qantas Airbus A380 jet was forced to make an emergency landing after one of its four Rolls-Royce Plc engines appeared to break apart in flight, scattering debris over an Indonesian island.

11 Qantas says A380 engine failure may be "design issue"

By Michael Perry and Victoria Thieberger, Reuters

Fri Nov 5, 12:00 pm ET

SYDNEY/MELBOURNE (Reuters) – A faulty part or design issue may have caused the severe damage to an engine that forced a Qantas Airways Airbus A380 to make an emergency landing in Singapore, Qantas’s boss said on Friday.

Separately, a European Union air safety body confirmed it told airlines in August to make checks after finding “wear, beyond engine manual limits” on the type of Rolls-Royce engines fitted to the Qantas jet and some other A380s.

And less than 48 hours after the A380 incident, a Qantas Boeing 747 flying the same Sydney route returned to Singapore, also as a result of engine trouble.

12 EU watchdog flagged Rolls-Royce engine issue in Aug

By Rhys Jones and Maria Sheahan, Reuters

Fri Nov 5, 11:55 am ET

LONDON/FRANKFURT (Reuters) – A European aviation regulator flagged in August potential problems with the type of Rolls-Royce engine that blew apart on Thursday’s Qantas Airways A380 flight.

The European Aviation Safety Agency (EASA) told airlines in an August 4 directive to conduct additional checks on the Trent 900 after it found “wear, beyond engine manual limits” on certain parts, which “present a potential unsafe condition to the aeroplane.”

The news puts the spotlight firmly onto Rolls-Royce, which makes Trent 900 engines used on the Sydney-bound flight which was forced to return to Singapore after the incident.

13 Detritus of old GM hits auction block ahead of IPO

By Deepa Seetharaman, Reuters

Fri Nov 5, 10:50 am ET

PONTIAC, Michigan (Reuters) – Among the abandoned robots and industrial equipment strewn about a cavernous truck assembly plant here, Tom Dilworth mused about what brought General Motors Co to its knees last year.

“What we have here,” Dilworth, 58, concluded, “is a failure to compete.”

As a restructured General Motors races ahead with its landmark initial public offering, it has taken pains to tell investors that it is a leaner, more nimble company able to edge out rivals in the global auto industry.

14 Bush considered attack on Syrian facility: book

By Steve Holland, Reuters

1 hr 38 mins ago

WASHINGTON (Reuters) – Former President George W. Bush says he considered ordering a U.S. military strike against a suspected Syrian nuclear facility at Israel’s request in 2007 but ultimately opted against it.

Israel eventually destroyed the facility, which Syria denied was aimed at developing a nuclear weapons capability.

In his memoir, “Decision Points,” to hit bookstores on Tuesday, Bush wrote that he received an intelligence report about a “suspicious, well-hidden facility in the eastern desert of Syria” that looked similar to a nuclear facility at Yongbyon, North Korea. This prompted suspicions that Syria was trying to develop a weapons program with North Korean help.

15 U.S. defends human rights record at U.N.

By Stephanie Nebehay, Reuters

2 hrs 15 mins ago

GENEVA (Reuters) – The United States defended itself against criticism of its human rights record from friend and foe alike on Friday in a United Nations forum that the former Bush administration had boycotted as hypocritical.

Senior U.S. officials said President Barack Obama’s government had begun “turning the page” on practices of George W. Bush’s administration that had caused global outrage, and denied allegations that the U.S. used torture.

“Let there be no doubt, the United States does not torture and it will not torture,” Harold Hongju Koh, State Department legal adviser, told the council.

16 Obama heads to Asia, hopes to deliver on jobs

By Patricia Zengerle, Reuters

Fri Nov 5, 10:56 am ET

WASHINGTON (Reuters) – President Barack Obama launched a 10-day trip to Asia on Friday aimed at boosting exports and creating U.S. jobs, three days after voters punished his Democrats for stubbornly high unemployment.

Obama, who has said creating jobs is his top priority, received some encouraging news just before he left Washington. The government reported faster-than-expected payroll growth, although the unemployment rate remained steady at 9.6 percent.

Obama called for “putting politics aside” in brief remarks at the White House where he kept up a conciliatory tone with victorious Republicans.

17 White House signals compromise on tax cuts

By Jeff Mason and Richard Cowan, Reuters

Thu Nov 4, 11:01 pm ET

WASHINGTON (Reuters) – A conciliatory White House said on Thursday it was willing to negotiate with Republicans on tax cut extensions, but Senate Republican leader Mitch McConnell took a hard line against compromises with President Barack Obama in a new Congress.

In the first possible policy shift since Democrats suffered heavy election losses two days ago, White House spokesman Robert Gibbs signaled Obama was open to talks on a temporary extension for the wealthy of Bush-era tax cuts that expire at the end of the year.

The fight over tax cuts looms as one of the biggest clashes since the election between Obama and Republicans, who will control the House of Representatives in the new Congress that convenes in January.

18 China and Germany belittle U.S. actions before G20

By Zhou Xin and Annika Breidthardt, Reuters

Fri Nov 5, 9:18 am ET

BEIJING/BERLIN, Japan (Reuters) – China rebuffed on Friday a U.S. plan to set limits for trade imbalances and Germany dubbed the Fed’s money-printing policy “clueless,” setting the stage for what could be a fractious G20 summit next week.

Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world’s second-largest economy.

The waters of the debate have been muddied by the Federal Reserve’s decision to buy $600 billion in long-term bonds with new money in an effort to revive the flagging U.S. economy.

19 For doctor pushing lung screening, a vindication

By Maggie Fox, Health and Science Editor, Reuters

Thu Nov 4, 9:16 pm ET

WASHINGTON (Reuters) – Dr. Claudia Henschke was delighted with the news — a trial of 53,000 people had shown that screening smokers and ex-smokers for lung cancer can save lives, something she has been trying to prove for 10 years.

The trial, sponsored by the National Cancer Institute and conducted with the utmost care, showed that the three-dimensional X-rays called spiral CT scans reduced deaths from lung cancer by 20 percent over just five years.

It was no surprise to Henschke, who has shown even more profound results in a series of studies. And she says she is not bitter that her data, and her advocacy for screening, have been rejected repeatedly by many other cancer experts.

20 Pelosi will seek to stay as House Dem leader

By CHARLES BABINGTON, Associated Press

16 mins ago

WASHINGTON – Despite widespread complaints about massive losses that will put Democrats in the minority, Speaker Nancy Pelosi said Friday she will try to stay on as leader of her party in the House.

The decision exposed a rift between Pelosi’s liberal allies and the dwindling number of moderate Democrats, who feel besieged and eager for substantive and symbolic changes in direction after Tuesday’s Republican rout. It also is likely to trigger leadership battles farther down the ladder.

Pelosi, the nation’s first female speaker, said many colleagues urged her to seek the post of minority leader in the new Congress that convenes in January. That will be the Democrats’ top post, because Republicans, who grabbed more than 60 Democratic-held seats Tuesday, will elect the next speaker. It will be John Boehner of Ohio, who will swap titles with Pelosi if she succeeds in her bid.

21 Hurricane Tomas floods quake-shattered Haiti town

By JACOB KUSHNER, Associated Press

23 mins ago

LEOGANE, Haiti – Hurricane Tomas flooded the earthquake-shattered remains of a Haitian town on Friday, forcing families who had already lost their homes in one disaster to flee another. In the country’s capital, quake refugees resisted calls to abandon flimsy tarp and tent camps.

Driving winds and storm surge battered Leogane, a seaside town west of Port-au-Prince that was near the epicenter of the Jan. 12 earthquake and was 90 percent destroyed. Dozens of families in one earthquake-refuge camp carried their belongings through thigh-high water to a taxi post on high ground, waiting out the rest of the storm under blankets and a sign that read “Welcome to Leogane.”

“We got flooded out and we’re just waiting for the storm to pass. There’s nothing we can do,” said Johnny Joseph, a 20-year-old resident.

22 Sharron Angle not likely to flee politics

By CRISTINA SILVA, Associated Press

53 mins ago

LAS VEGAS – Sharron Angle’s tea party revolution came up short in her bid to oust Senate Majority Leader Harry Reid, but her political career appears far from over. The Nevada Republican who became a national symbol of grassroots conservatism during the midterm elections didn’t act like a politician ready to retire after her loss. Angle urged her followers to keep up the fight and alluded to a return to politics.

“We the people have been awakened over the last 20 months,” she told hundreds of supporters. “We did not awaken to go back to sleep.”

Angle will have plenty of opportunities for a political encore.

23 Polish priest raising world’s largest Jesus statue

By VANESSA GERA, Associated Press

54 mins ago

SWIEBODZIN, Poland – Step aside, Rio de Janeiro. This town is building a Jesus bigger than yours. A Polish priest is on the verge of realizing his dream of erecting what he says will be the world’s largest statue of Jesus Christ in a small town in western Poland.

Attempts were made Friday to complete the statue – which will rise a couple yards higher than the iconic Christ the Redeemer monument in Rio de Janeiro. But heavy winds prevented cranes from lifting the torso, arms and head onto the lower half of the robed white figure.

Workers plan to try again just after sunrise Saturday. Polish media say the project cost 4 million zlotys ($1.45 million). Donations came from across the spectrum – from business people to poor people wanting to make a contribution to the church. Work on the statue began in 2008.

24 MSNBC suspends Olbermann for political donations

By DAVID BAUDER, AP Television Writer

3 mins ago

NEW YORK – MSNBC has suspended prime-time host Keith Olbermann indefinitely without pay for contributing to the campaigns of three Democratic candidates this election season.

Olbermann acknowledged to NBC that he donated $2,400 apiece to the campaigns of Kentucky Senate candidate Jack Conway and Arizona Reps. Raul Grivalva and Gabrielle Giffords.

NBC News prohibits its employees from working on, or donating to, political campaigns unless a special exception is granted by the news division president – effectively a ban. Olbermann’s bosses did not find out about the donations until after they were made. The website Politico first reported the donations.

25 White ex-transit officer given 2-year prison term

By GREG RISLING, Associated Press

36 mins ago

LOS ANGELES – A judge sentenced a white former transit officer to two years in prison Friday in the shooting death of an unarmed black man on a California train platform, angering friends and family members of the victim who wanted a much harsher punishment.

The case has provoked racial unrest at every turn, and police in Oakland were on alert for more problems following a sentence that many thought was too light.

Defendant Johannes Mehserle had faced a possible 14-year maximum term after being convicted of involuntary manslaughter.

26 Qantas: faulty design, build may be behind blowout

By ROHAN SULLIVAN and VIJAY JOSHI, Associated Press

Fri Nov 5, 2:30 pm ET

SYDNEY, Australia – Qantas believes the engine that blew apart on the world’s largest jetliner was probably designed or built incorrectly, the chief of the Australian airline said Friday, focusing attention on the engine’s manufacturer, Rolls-Royce.

Hours after CEO Alan Joyce spoke, another Qantas plane with Rolls-Royce engines suffered an engine problem and turned back to Singapore’s airport shortly after it took off for Sydney. Qantas said the problem with the smaller Boeing 747 was not serious and the flight was scheduled to take off again, 3 1/2 hours late.

A passenger described a frightening scene aboard the Boeing, saying there was “a loud bang and a jet of fire from the back of the engine” two or three minutes after takeoff.

27 Shuttle launch off until end of month to fix leak

By MARCIA DUNN, AP Aerospace Writer

10 mins ago

CAPE CANAVERAL, Fla. – Space shuttle Discovery’s final voyage is off until at least the end of the month because of a large fuel leak that forced yet another launch delay.

It’s the fourth postponement in a week for Discovery’s mission to the International Space Station with six veteran astronauts and the first humanoid robot bound for orbit.

NASA tried to launch Discovery on Friday, but a potentially dangerous hydrogen gas leak cropped up midway through the fueling process and the countdown was halted.

28 Cable subscribers flee, but is Internet to blame?

By PETER SVENSSON, AP Technology Writer

1 hr 35 mins ago

NEW YORK – TV subscribers are ditching their cable companies at an ever faster rate in the past few months, and many of them aren’t signing up with a satellite or phone competitor instead.

Their willingness to simply go without pay television could be a sign that Internet TV services such as Netflix and Hulu are finally starting to entice people to cancel cable, though company executives say the weak economy and housing market are to blame.

Third-quarter results reported this week by major cable and satellite TV companies show major losses, but don’t settle the question of what’s causing them.

29 Westwood 1 shot back of Molinari at HSBC Champions

By DOUG FERGUSON, AP Golf Writer

Fri Nov 5, 2:15 pm ET

SHANGHAI – Lee Westwood figured a 5-wood would be enough to carry the water on the par-5 18th and set up an easy birdie for a share of the lead Friday at the HSBC Champions.

Only when he got to the green did he realize the hole was closer to the edge of a slope than usual, and that his position some 15 yards left of the pin made it nearly impossible to keep it on the green. He had to settle for par, leaving him one shot behind Francesco Molinari.

“That’s why you shouldn’t play golf by memory,” he said after a 2-under 70.

30 Democrat Malloy wins Connecticut governor’s race

Associated Press

43 mins ago

HARTFORD, Conn. – Dan Malloy has defeated Republican Tom Foley to become the first Democrat in two decades to be elected governor of Connecticut.

The Associated Press on Friday reinstated its call of Malloy as the winner of the governor’s race. The AP initially called Malloy the winner on Wednesday, after Secretary of the State Susan Bysiewicz said her preliminary count showed Malloy had won by 3,103 votes. The AP withdrew the call Wednesday night when its vote count, with all but a handful of precincts reporting, showed Foley with a narrow lead.

The AP received a complete report of results from heavily Democratic New Haven on Thursday, which substantially boosted Malloy’s total, as did new vote totals from heavily Democratic Bridgeport on Friday. The AP’s complete but unofficial count shows Malloy winning by 7,762 votes. A separate complete count now posted on the secretary of the state’s website shows Malloy winning by 5,644 votes. Both margins are well outside the difference that would trigger an automatic recount under state law.

31 70 killed in Taliban attacks on Pakistani mosques

By RIAZ KHAN, Associated Press

Fri Nov 5, 2:35 pm ET

PESHAWAR, Pakistan – A suicide bomber killed 67 people Friday at a mosque frequented by tribal elders opposed to the Pakistani Taliban. Hours later, three people died in a grenade attack on another mosque associated with anti-Taliban militia.

The strikes in northwest Pakistan were a reminder of the potency of the Taliban and their al-Qaida allies along the Afghan border despite U.S.-backed army offensives. The Obama administration believes success against insurgents there is key to its hopes of winning the war in Afghanistan.

The Pakistani army has supported the creation of militias to fight the Taliban, who are unpopular in many parts of the northwest. The groups know the region and its inhabitants and are seen as useful in securing cleared areas or stopping militants from moving into their districts.

32 GOP gains set stage for national security battle

By ANNE GEARAN, AP National Security Writer

Fri Nov 5, 6:53 am ET

WASHINGTON – The big Republican gains in Congress could make it harder for President Barack Obama to keep his pledge to start bringing U.S. troops home from Afghanistan by next summer and dim prospects for several of his administration’s centerpiece military and diplomatic initiatives.

The GOP’s victories seem likely to derail congressional efforts to repeal the “don’t ask, don’t tell” ban on gays serving openly in the military, thwart efforts to curb the growth of Pentagon spending and frustrate hopes for quick ratification of a nuclear arms control agreement with Russia.

More Republicans in Washington may also mean trouble for Obama’s efforts to improve U.S. relations with Iran and Cuba and restart disarmament talks with North Korea.

33 Removal of Iowa judges may inspire similar efforts

By MICHAEL J. CRUMB and NOMAAN MERCHANT, Associated Press

18 mins ago

DES MOINES, Iowa – Emboldened by the success of a ballot initiative to oust Iowa judges who supported gay marriage, conservative activists are looking for new ways to use the power of the vote to strike back against the courts.

Judicial-removal campaigns have generally been difficult to sell to the public. But now some groups view them as a potential tool to influence the judiciary on gay rights, abortion and other divisive social issues.

Organizers of the Iowa campaign had several important advantages: a well-funded TV campaign, a grass-roots structure and an electorate that was receptive to their message.

34 Scientists find damage to coral near BP well

By CAIN BURDEAU, Associated Press

22 mins ago

NEW ORLEANS – For the first time, federal scientists have found damage to deep sea coral and other marine life on the ocean floor several miles from the blown-out BP well – a strong indication that damage from the spill could be significantly greater than officials had previously acknowledged.

Tests are needed to verify that the coral died from oil that spewed into the Gulf of Mexico after the Deepwater Horizon rig explosion, but the chief scientist who led the government-funded expedition said Friday he was convinced it was related.

“What we have at this point is the smoking gun,” said Charles Fisher, a biologist with Penn State University who led the expedition aboard the Ronald Brown, a National Oceanic and Atmospheric Administration research vessel.

35 Obama flies to India, looking to boost US economy

By ERICA WERNER, Associated Press

2 hrs 3 mins ago

MUMBAI, India – President Barack Obama hasn’t been able to drive down unemployment in America, so he’s coming to India in search of U.S. jobs.

Four days after his party suffered heavy, economy-influenced losses in Congress, the president will arrive Saturday in Mumbai, India’s booming financial center, where he will meet with local business leaders and with American executives who have traveled to India in search of billions of dollars in trade deals.

The White House hopes to announce agreements on aircraft and other exports, and generally broadcast that America is open for business with burgeoning India and its 1.2 billion residents.

36 Obama heading for India to open Asia trip

By ERICA WERNER, Associated Press

Fri Nov 5, 6:55 am ET

WASHINGTON – President Barack Obama is leaving the fallout from the Democrats’ election drubbing behind as he heads for India and what’s likely to be a friendlier reception in the world’s largest democracy.

The president was to depart Friday morning on Air Force One for Mumbai, India, where he was to arrive around noon local time Saturday after refueling in Germany. It’s the first stop on a 10-day tour through India, Indonesia, South Korea and Japan, the longest foreign outing of Obama’s presidency.

Obama’s trip aims to seek out economic benefit for the U.S., but advisers are also emphasizing his decision to visit four vibrant and growing democracies. It’s an itinerary meant to reinforce support for democratic values at a time when the U.S. commitment to human rights worldwide has sometimes come into question.

37 Lucha libra becomes jeering, cheering family night

By TERRY TANG, Associated Press

Fri Nov 5, 2:44 pm ET

PHOENIX – Adorable Yuky, a hefty figure in pink and black spandex, soaks in the cheers and ear-splitting screams from the crowd. Tonight, the wrestler has a trick – or rather a treat – up his sleeve.

To celebrate the Mexican holiday, “El Dia del Nino” (Kids’ Day), Yuki hurls handfuls of candy into the audience. Kids make a dive for it, then are back in their seats – joining their parents in booing and yelling at the referee to shut up.

Bodies, not candy, are what tend to go flying at a lucha libre wrestling match. But in heavily Hispanic cities such as Phoenix, some parents are choosing the decades-old Mexican form of free fighting as a way to gain some quality time.

38 UN panel sees sources for billions for climate

By CHARLES J. HANLEY, AP Special Correspondent

Fri Nov 5, 1:01 pm ET

UNITED NATIONS – A high-level U.N. panel on Friday outlined potential sources, including levies on international flights, to raise up to $100 billion a year in new money for poorer countries to cope with climate change and reduce their greenhouse gas emissions.

The greatest contributions would come from private investment and from “carbon pricing,” either a direct tax broadly on emissions of carbon dioxide or a cap on emissions coupled with trading in emissions allowances, the advisory group of global political and financial leaders said in a report to U.N. Secretary-General Ban Ki-moon.

The United States has been a major holdout, however, against such carbon pricing plans, and Tuesday’s Republican victory in the U.S. House guarantees none will be enacted for at least two years.

39 Ex-GOP official: Money swap in DeLay case common

By JUAN A. LOZANO, Associated Press

Thu Nov 4, 8:37 pm ET

AUSTIN, Texas – A former Republican National Committee official told jurors Thursday in Tom DeLay’s money laundering trial he doesn’t believe anything illegal was done when the RNC exchanged $190,000 in corporate donations raised by the ex-House majority leader’s political action committee, saying such money swaps were common.

But Terry Nelson, who had been the executive director of political operations for the Washington-based RNC, said that while he had done similar swaps with state parties, he had never done one with a PAC. He also said the transaction was unusual because the PAC had provided a list of seven candidates to whom it wanted the funds to go.

Under Texas law, corporate money cannot be directly used for political campaigns. DeLay is accused of using his PAC to illegally funnel corporate donations into Texas legislative races eight years ago. He is charged with money laundering and conspiracy to commit money laundering. DeLay, who faces up to life in prison if convicted, has denied any wrongdoing.

40 Murkowski acts like victor but questions linger

By BECKY BOHRER, Associated Press

Thu Nov 4, 6:56 pm ET

ANCHORAGE, Alaska – Alaska U.S. Sen. Lisa Murkowski is acting as though she already has pulled off an improbable victory after her write-in candidacy, enthusiastically thanking supporters and telling them they’ve made history.

She may have won. Or she may be overly optimistic.

The race is far from over.

Congressional Progressive Caucus Increases Plurality in Next Congress

(2 pm. – promoted by ek hornbeck)

As David Swanson noted on Wednesday:

You may have heard that our center-right nation got enthusiastic, formed a grassroots movement called a tea party, and overwhelmingly voted in a more rightwing party, sending hordes of nasty socialists packing as a result of their overly progressive performance, meaning gridlock between the righteous Congress and the infidel president for the next two years. There are some problems with this story, beginning with the fact that it’s completely false.

[snip]

As Karen Dolan blogged about immediately after Tuesday’s elections, members of the Congressional Progressive Caucus — over 80 members — lost only 3 seats. The Cut-Spending-Except-For-Killing Blue Dogs had 54 members and lost 26 of them, and those 26 were their true believers. Congress members, including one or two real progressives, didn’t lose by being progressive but by being Democrats. Alan Grayson was defeated by the largest investment of corporate money in any House race, but the obedient corporatist Democrat in the next district over lost too. And this was despite the Democratic Party funding and supporting the Blue Dogs, leaving the progressives to raise their own money.

Tea Party candidates, in contrast to progressives, did not have a successful day on Tuesday. Their nominees’ craziness cost the Republican Party control of the Senate. Yet the whole corporate-funded smoke-and-mirrors “movement” of the Tea Party pushed the Republican Party as a whole to the right, in a way that no well-funded institution has pushed the Democrats to the left or even tried to. And this is the key lesson: pushing the Democrats to the left would save them from themselves.

On Thursday Amy Goodman at Democracy Now spoke with CPC Co-Chair Raul Grijalva about the CPC not only holding it’s own with a loss of only 4 seats in the mid terms, but coming out of the elections holding the relative largest plurality of all groups in Congress.

The Democrats lost the majority in the US House of Representatives in Tuesday’s midterm elections, but what is the makeup of the new Democratic House caucus? The conservative Blue Dogs lost half their members, while the Progressive Caucus remains near eighty. We speak to its co-chair, Rep. Raúl Grijalva, who appears to have retained his seat in a close election in Arizona’s 7th Congressional District. Over the past year, Grijalva has received numerous threats, including having a suspicious package covered in swastikas sent to his office and having a bullet shot through his district office in Yuma, Arizona.



Democracy Now – November 04, 2010

about 10 minutes

..transcript follows..

Transcript:

JUAN GONZALEZ: Just four years after Democrats swept control of Congress, Republicans took back control of the House of Representatives in dramatic fashion on Wednesday. With ten races still to be called, the Republicans have gained sixty House seats, giving them a wide majority of 239 to 186 for the Democrats.

The battle for leadership posts within the Republican-led GOP is already underway, and elections will take place within the party when Congress returns in two weeks. The top slots are not expected to be contested, with Minority Leader John Boehner of Ohio almost certain to become Speaker of the House and Minority Leader Eric Cantor to become the new Majority Leader.

AMY GOODMAN: Meanwhile, on the other side of the aisle, the makeup of the Democratic caucus has also changed. The group most affected in the midterm elections is the conservative Blue Dog Democrats. The Blue Dog caucus was cut in half, going from fifty-four to twenty-six. At the same time, the seventy-nine-member Progressive Caucus lost about four members on Tuesday. This means progressives will make up a notably higher percentage of Democratic House members in the 112th Congress.

For more, we’re joined by the co-chair of the Congressional Progressive Caucus, Arizona Democrat Raúl Grijalva. He is in a very tight race right now, though appears to have edged it out with 3,900 votes against a Republican challenger named Ruth McClung, although McClung has refused to concede until all votes are counted. With 99 percent of the precincts reporting, Grijalva leads by about three percentage points. Over the past year, he has received a number of security threats, including a suspicious package covered in swastikas that had suspicious powder in it sent to his office, a bullet shot through his district office in Yuma.

Joining us now from Tucson, Arizona, well, welcome to Democracy Now!, Congressman Grijalva. You’ve been through a lot this year. What is the latest numbers right now? And have you already given your victory speech?

REP. RAÚL GRIJALVA: Yeah, I did give my victory speech on Election Night, and we’re up by about 4,000. There’s ballots to be counted, absentee ballots that were not counted on Election Day. We hope and we believe that in the areas that they’re coming from were areas in which we did well, and if that pattern continues, we will maintain the lead or build on it. So we-I think what I said Election Night, to be clear, I said, “Well, I go back to Congress not with a renewed sense of caution, but with a renewed sense of purpose.”

And I think, given what the makeup of the House of Representatives is going to be, the role of the Progressive Caucus and progressive members, in general, is going to be beyond the role of loyal opposition to be ineffective and to assure that the legislative items that have to be challenged that the Republicans are going to bring up are also challenged by alternatives that are put together by progressives and Democrats. That lacked the last session, in which we compromised and watered down many, many important initiatives, and I think we paid the price for it.

JUAN GONZALEZ: Well, Congressman, you-some are saying that you had such a tight race because of the high-profile positions you took in the battle over the Arizona “show me your papers” law, publicly calling initially for a boycott of your own state, and that that sort of rallied conservative forces both within the state and outside of the state to try to defeat you. Any regrets about the positions you took back then, or ideas about why the race became so close?

REP. RAÚL GRIJALVA: I think you’re correct. I think we got battered for about six months on the issue of the boycott, on the issue of not supporting 1070. And generally, the cauldron was this. You know, you had immigration, 1070 here, plus profile positions on other kinds of issues that I had taken, that created a good opportunity for people to coalesce, to try to make an example of, and so we knew around July how tough this race was going to be. And we prepared for it. And we’re going to be one of the survivors. But yeah, that issue was it, over and over and over again.

And do I regret it? I think strategically I could have done something differently or better, but at the moment, it was a personal decision that-not to let this law go quietly into the night, that we had to say something loud and bring attention to it. And I’m glad we did bring attention to it, because it is a bad law, and it’s not a good precedent, not just for Arizona, but for the country.

AMY GOODMAN: On the issue of immigration, three House members from the Congressional Hispanic Caucus-Congress members John Salazar of Colorado; Solomon Ortiz, Texas; Ciro Rodriguez, also Texas-lost their bids for reelection, meaning the pro-immigration reform wing of Congress will shrink next session. They were replaced by three anti-immigrant congressmen. Your response, Congress member Grijalva, in terms of where this means immigration reform will go?

REP. RAÚL GRIJALVA: I think it’s going to be difficult, very difficult. And I’ve told groups, prior to the election and since the election, that pro-immigrant groups, pro-immigrant rights groups, that we’re going to be fighting an uphill battle this whole session, that the Republican Party was lockstep opposed to it. You saw, even in the Senate, no action on the DREAM Act. I don’t see their position changing at all. And so, for us, it’s going to be an uphill battle. And I hope that this is one of the alternatives that’s presented by the Democratic Caucus, even if we have to do it in a more pragmatic way, in a piece-by-piece approach. But in terms of overall comprehensive reform, it’s going to be very difficult. I think we use this period of two years prior to the presidential election as a means to build public support and a public constituency for immigration reform and probably concentrate on that more than a legislative vehicle that I think is going to be very, very difficult.

JUAN GONZALEZ: And in the sense of the Democrats fighting the impact of whether they fought strong enough for immigration reform or not in terms of this election, clearly Harry Reid benefited dramatically by his outspokenness in support of immigration reform, because really the Latino vote in Nevada was the one that made-allowed him to survive against Sharron Angle. And yet, others who maybe were not as vocal as you or Harry Reid were, in terms of their stance, have ended up now paying the price, because the numbers and the percentages of Latinos who came out to vote has clearly dropped from-certainly from 2008, and really not much improvement from 2006.

REP. RAÚL GRIJALVA: Absolutely correct. In surviving this race that we had-that I had, there’s no question the Latino community threw the lifeline for me and is going to keep me in office. And I think we missed an opportunity maybe eighteen months ago to tackle the issue of immigration reform head-on as a party and build the kind of trust with the Latino community that’s not only needed for elections, but needed overall, and we didn’t do that.

And, you know, I find it kind of ironic that many of the pieces of legislation-immigration is a good example-that we did not take on was because we needed to protect vulnerable members of our caucus. And as you saw, the opposition to them was not any less, if we had or hadn’t. And you see by the losses that the biggest chunk of losses, huge chunk of losses, for the Democrats came out of that string of conservative Democrats that we spent two years trying to protect.

AMY GOODMAN: I want to ask you about the Blue Dogs and the progressives. I mean, the progressive Democrats make up a significant percentage of Democrats overall now in Congress. They outnumber the Blue Dogs, who lost by half-they’re down to twenty-six-by some three times. And at the number around eighty, we’re talking about what? A little under a half of the Democrats are progressive Democrats.

REP. RAÚL GRIJALVA: Yeah, key to the progressive Democrats in Congress and to the Democratic Caucus is going to be the agenda that we coalesce around, the leadership that we coalesce around, and the fact that we stick together. There are issues that we have to stick together. When it comes to Bush’s-continuing the Bush tax cuts for the rich, we have to stick together. We have to stick together on the issue of privatization and of cutting benefits and raising retirement age for Social Security. We have to stick together. We have to stick together on job creation initiatives. And I think that will be the test for us. I think being able to coalesce around leadership and an agenda, I think, is going to make us very, very effective, not only as part of presenting alternatives to the Republican agenda, but within our own caucus to setting the table on the initiatives that we’re going to support.

With regards to the Blue Dogs, my point earlier, that we spent two years protecting the vulnerability of many of these members. We didn’t go with the public option. We didn’t do a big job creation bill. We didn’t roll back the Bush tax cuts, extend it to the middle class. We didn’t do-on and on and on. And now I think we’re not burdened with that vulnerability protection. I think we need to push forward. And I think the response by the American people for the minority party in this case is going to increase and increase, and I think that that support is going to be needed in 2012.

JUAN GONZALEZ: Congressman, I’d like to ask you, in terms of this battle over the agenda now that will occur not only in Congress, but obviously the administration-President Obama has to decide how he is going to move forward-one of the things I noted in the first few days before and after the election is this discussion of education reform as becoming the way that Republicans and the White House can work together. Haley Barbour talked about it, saying, “Hey, if you want to talk about charter schools or performance pay for teachers, the Republicans are ready to make deals.” And Arne Duncan said similar things yesterday, that he believes that there’s room to move together, Democrats and Republicans, around education reform. Will the what some people consider the dismantling of public education become sort of the New Deal that the Obama administration tries to make with Republicans, as Bill Clinton tried after the 1994 elections to make welfare reform the way to win back some popularity? Is your sense that this is beginning to shape up this way?

REP. RAÚL GRIJALVA: Yeah, that’s my sense and also my concern, to be quite honest, in that, you know, we had an opportunity to reauthorize elementary and secondary education. We didn’t do that. Now we go back to a session in which the Republicans are going to control the Education and Labor Committee, of which I’m a member, and to deal with the issues that we already rejected. We told Secretary Duncan that his four prescriptions for fixing schools, which were essentially to privatize, close them-we rejected them as a caucus of that committee, as a Democratic caucus. I see those coming back on the table. And, you know, what essentially it does, it makes-when 80 to 90 percent of the kids going through school in this country are coming from urban and poor communities, and this is the time we invest in public education. So, yeah, I see that as a place where people are going to look at a common agenda between Republicans and the White House, but I also see it as a-it could be for public education-very, very slippery slope. And we have to be very cautious and very protective of public education as one of the agenda items.

AMY GOODMAN: Republican leaders are vowing to repeal the Democrats’ signature healthcare law. This is Ohio Republican John Boehner, again, expected to be the next Speaker of the House, speaking at his news conference yesterday.

REP. JOHN BOEHNER: I believe that the healthcare bill that was enacted by the current Congress will kill jobs in America, ruin the best healthcare system in the world, and bankrupt our country. That means that we have to do everything we can to try to repeal this bill and replace it with commonsense reforms that will bring down the cost of health insurance.

AMY GOODMAN: Meanwhile, President Obama delivered his first public comments on the election results Wednesday with a news conference at the White House. This is what he said about healthcare reform.

PRESIDENT BARACK OBAMA: You know, when I talk to a woman from New Hampshire who doesn’t have to mortgage her house because she got cancer and is seeking treatment but now is able to get health insurance, when I talk to parents who are relieved that their child with a preexisting condition can now stay on their policy until they’re twenty-six years old and give them the time to transition to find a job that will give them health insurance, or the small businesses that are now taking advantage of the tax credits that are provided, then I say to myself, this was the right thing to do.

Now, if the Republicans have ideas for how to improve our healthcare system, if they want to suggest modifications that would deliver faster and more effective reform to a healthcare system that has been wildly expensive for too many families and businesses and certainly for our federal government, I’m happy to consider some of those ideas.

AMY GOODMAN: There was President Obama at his news conference saying he took a shellacking and he was sorry to the Congress members who lost their jobs, their seats, as a result of these midterm elections. But Congress member Grijalva, what about healthcare?

REP. RAÚL GRIJALVA: I think that that’s going to be a very important battle line. There’s no question that we need to polish this healthcare reform bill. There are things in it that need to be changed, that need to be modified, as the President said. But the wholesale repeal of it is a huge mistake. Within that bill, for many communities, is issues of-attacking the issue of disparity, attacking the issue of equity when it comes to women and people of color, attacking the issue of Indian healthcare that had not been reauthorized in ten years. So when you broadly talk about repeal, you’re also talking about some significant gains that were made within that bill. If the Republicans want to talk about extending the benefit to more, we should be able to deal with that and talk about it. If they’re talking about modifications, of course. But if the issue is to undercut and sabotage any healthcare reform effort that we took in the last two years, then I think that needs to be a battle line.

AMY GOODMAN: We’re going to break and then come back to this discussion. We’re joined by the Tucson Congress member Raúl Grijalva. He has probably just survived a very stiff challenge, though the counts are still coming in. His challenger says she will not concede until every last vote is counted. He is about up by 3,900 votes-Congress member Ruth McClung [sic]. We are going to, in addition to Congressman Grijalva, co-chair of the Progressive Caucus, be joined by Ryan Grim of Huffington Post, talking about Republican strategy in the next two years. This is Democracy Now! Stay with us.

[break]

AMY GOODMAN: Just a correction, Ruth McClung is not a Congress member, as far as we know, but she is a rocket scientist. I was wondering, Raúl Grijalva, if your ad was “Congress is not rocket science.” Anyway, Juan?

REP. RAÚL GRIJALVA: No, but there was a lot of temptations, though.

Punting the Pundits

Punting the Punditsis 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.

David Sirota: Thank You, Dick Cheney, For Giving Me the Proper Words

The facts are painfully apparent. Though hundreds — if not thousands — of people in D.C. are professionally paid to pretend these facts require debate and analysis and parsing and speculation and press releases and pithy Tweets and Sunday Show roundtables and C-SPAN symposia and to-camera cable-TV rants and lengthy thousand-page books, they don’t require any of that. The facts are simple. The facts are obvious. The facts are undeniable to anyone not paid fistfulls of sweaty money  to lie or sensationalize:

1. The Democratic Party shit on its base with its policies, as noted above.

2. This demoralized the Democratic base, which responded by not turning out to vote. As CBS News notes, “Hispanics, African Americans, union members and young people were among the many core Democratic groups that turned out in large numbers in the 2008 elections (but) turnout among these groups dropped off substantially, even below their previous midterm levels.”

3. In cause-and-effect style, the result of all this was, as the Washington Post reports, a freshman congressional class that is primarily made up of angry, white, lunatic-conservative assholes.

So yes, all of you who are wasting all of our time pretending this isn’t the basic point-A-to-point-B story of the election — and there are a lot of you out there — please, if not for me, then for everyone else: Go fuck yourself.

Paul Krugman: The Focus Hocus-Pocus

Democrats, declared Evan Bayh in an Op-Ed article on Wednesday in The Times, “overreached by focusing on health care rather than job creation during a severe recession.” Many others have been saying the same thing: the notion that the Obama administration erred by not focusing on the economy is hardening into conventional wisdom. . . . .

Of course, there’s a subtext to the whole line that health reform was a mistake: namely, that Democrats should stop acting like Democrats and go back to being Republicans-lite. Parse what people like Mr. Bayh are saying, and it amounts to demanding that Mr. Obama spend the next two years cringing and admitting that conservatives were right.

There is an alternative: Mr. Obama can take a stand.

For one thing, he still has the ability to engineer significant relief to homeowners, one area where his administration completely dropped the ball during its first two years. Beyond that, Plan B is still available. He can propose real measures to create jobs and aid the unemployed and put Republicans on the spot for standing in the way of the help Americans need.

Would taking such a stand be politically risky? Yes, of course. But Mr. Obama’s economic policy ended up being a political disaster precisely because he tried to play it safe. It’s time for him to try something different.

(emphasis mine)

Joe Conason: Obama should push back — like Bill Clinton

It’s true that Clinton compromised after 1994 — but first he fought the Gingrich GOP to a standstill

Long before the dismal results of Tuesday’s election were complete, one especially dog-eared bit of guidance for President Obama was getting wide circulation in the mainstream: He must now emulate Bill Clinton, who “shifted to the center” after the electoral debacle of November 1994, “triangulated” his way to compromise with the Republicans, and won a second term.

Among the reasons why such advice is outdated and useless, the most obvious may be that Obama’s position today is stronger than Clinton’s after 1994. Today, unlike then, the Democrats can look forward to retaining control of the Senate. But there are two other overriding reasons why Obama shouldn’t seek to imitate Clinton by immediately seeking compromises with the Republicans.

The first is that he has tried vainly from the beginning of his presidency to engage the Republicans in negotiation over vital reforms, only to learn again and again that they aren’t really interested in anything but sabotage. The second is that compromising with the Republicans isn’t exactly what Clinton did — or not at first, anyway. Before he could do anything else, he had to push back.

Robert Reich: The Republican Recipe for an Anemic Economy Through Election Day 2012

The real message from voters was “Fix this stinking economy.” But Republicans have no intention of doing so.

With Republicans in control of the House, forget spending increases or tax cuts to stimulate the economy.

Republicans don’t believe in stimulating economies. They think markets eventually clear — once the pain is sufficient. Or in the immortal words of Herbert Hoover’s treasury secretary, millionaire industrialist Andrew Mellon: “Liquidate labor, liquidate stocks, liquidate the farmer, liquidate real estate. It will purge the rottenness out of the system. People will work harder, lead a more moral life.”

Of course, Mellon was dead wrong. Nothing was purged. Instead, the economy sunk into deeper and deeper depression.

Ari Berman: Why Dean Won’t Challenge Obama in 2012

It was inevitable, following the election, that some major publication would write an article about how Obama will face a primary challenge from the left in 2012. Politico, not surprisingly, got there first, with a column by Roger Simon today wondering whether Howard Dean could defeat Obama.

Buried in the piece is the rather large caveat that Dean doesn’t actually think such a challenge is a good idea. “Nobody is going to beat him [for the nomination] in 2012,” Dean said. “All that would do is weaken the president.”

Dean’s not going to run against Obama in 2012, nor should he. But that doesn’t mean Obama couldn’t learn a thing or two from Dean’s presidential campaign and chairmanship of the party. Those lessons just might help Obama turn his ailing presidency around.

Richard Reeves: Richard Reeves

It may not get much done, but the first session of the 112th Congress, convening in January, will be fun to watch. The most interesting commentary on the 2010 midterm elections was from Republican partisans and their tea party cousins as they rhetorically, warily circled each other on the morning after.

The man who managed Sen.-elect Rand Paul’s primary campaign in Kentucky, David Adams, had this to say:

“I’m hoping for a lot of fireworks in Washington over who takes control of who. If Republican leaders think for a minute they’re going to suck us in and continue business as usual, they’re wrong. … We’ve changed the shape of the debate.”

His candidate, meanwhile, was saying he’s going to Washington “to take our government back!” To when? The early 20th century, I’d guess. The other interesting question is, are they going to continue to try to take it back from both Democrats and Republicans?

Ruth Marcus: Judicial Accountability off the Rails

In one of Tuesday’s most disturbing election results, the losing candidates didn’t even have opponents.

Three justices of the Iowa Supreme Court lost what is ordinarily a pro forma election to retain their seats. Not coincidentally, these justices were part of last year’s unanimous ruling to strike down a state law defining marriage as between a man and a woman. Outside groups opposed to same-sex marriage, including the National Organization for Marriage and the American Family Association, poured hundreds of thousands of dollars into television ads and other efforts to deny them a new term.

“Activist judges on Iowa’s Supreme Court have become political, ignoring the will of voters and imposing same-sex marriage on Iowa,” said one commercial. “Liberal, out-of-control judges ignoring our traditional values and legislating from the bench. … Send them a message. Vote no on retention of Supreme Court justices.”

Well, message sent-and that is the problem. The Iowa vote is part of a larger phenomenon of the increasing politicization of judicial elections: more money, more attack ads, more intervention by outside groups, from trial lawyers to business interests.

Independents, Unions, and Gays- More Exit Polls

As a follow up to yesterday’s CBS News Exit Polling

Greg Sargent

(The Progressive Change Campaign Committee) set to release new polling from the respected Dem firm Public Policy Polling that is meant to buttress this case (“that indys who backed Obama in 2008 stayed home, because they were unsatisfied with Obama’s half-baked reform agenda, while McCain-supporting indys turned out in big numbers”). The Progressive Change Campaign Committee commissioned the poll and sent some results my way.

The key finding: PPP asked independents who did vote in 2010 who they had supported in 2008. The results: Fifty one percent of independents who voted this time supported McCain last time, versus only 42 percent who backed Obama last time. In 2008, Obama won indies by eight percent.

That means the complexion of indies who turned out this time is far different from last time around, argues Adam Green of the Progressive Change Campaign Committee. His case: Dem-leaning indys stayed home this time while GOP-leaning ones came out — proof, he insists, that the Dems’ primary problem is they failed to inspire indys who are inclined to support them.

“The dumbest thing Democrats could do right now is listen to those like Third Way who urge Democrats to repeat their mistake by caving to Republicans and corporations instead of fighting boldly for popular progressive reforms and reminding Americans why they were inspired in 2008,” Green says.

Note: Sargent doesn’t endorse this view, merely reports it.

Taylor Marsh quotes The Wall Street Journal

Union households, a key Democratic voting bloc, turned out in force last night and accounted for a quarter of the vote in the battlegrounds of Pennsylvania and Ohio, exit poll showed.

The problem: They didn’t always vote for Democrats, despite six-figure ad campaigns and get-out-the-vote efforts by their unions encouraging them to do so.

In the Pennsylvania Senate contest, for example, exit polls showed that 44% of union household members who voted Tuesday picked Republican Pat Toomey, rather than Democratic Rep. Joe Sestak. Mr. Toomey narrowly won, 51% to 49%, according the latest numbers from the Associated Press.

What’s going on? Nearly half, 45%, of Pennsylvania’s union household voters said someone in their house had been laid off in the past two years. President Barack Obama carried this state by 10 points in 2008, and campaigned there repeatedly this fall. But on Tuesday, 36% of the state’s electorate said they voted to register their discontent with Mr. Obama.

Marsh’s conclusion?  “You think this is bad? Just wait until Pres. Obama cuts a deal on education.”

Finally John Aravosis cites this Yahoo News analysis

Exit polling commissioned by the major cable news networks has found that 31 percent of people who identified as gay, lesbian or bisexual voted for Republicans on Election Day. That represents a big uptick from the 24 percent of gays who voted for the GOP in 2006 and from only 19 percent who did so in 2008. The trend appears to bear out pre-Election Day predictions from gay rights organizers that gay voters were angry and disenchanted with Democrats for not delivering on promises to the community.



After reviewing the full data, Sherrill says there was a disproportionate drop in Democratic support among LGB voters compared to Hispanic, black, and young voters. Though the sample size is still very small and thus there’s a large margin of error, Sherrill now says the drop may be attributed to “dissatisfaction with the pace of change on LGB rights over the past two years.”

Which John correctly identifies as validation for his initial data set

The best comparison is from one mid-term election to the next mid-term election, since turn out is usually lower in the off years.  Gay voters went from 75% Democratic in the 2006 House races to 68% Democratic in 2010 – i.e., a 7 point drop in gay support for Democrats (and a 7 point increase in support for Republicans), which translates to a 9.3% change.  It was an even greater drop if you look at the percentage of the gay vote that went Democratic in the 2008 House races, 80%, as compared to 68% this year.  That’s a 12 point drop, which translates to a 15% decrease.

My conclusion?  Pissing off your base loses elections.  Duh.

Anyone who claims to care about “electoral victory” is a LIAR!

Update: Amanda Terkel

On This Day in History: November 5

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

November 5 is the 309th day of the year (310th in leap years) in the Gregorian calendar. There are 56 days remaining until the end of the year.

On this day in 1938, Samuel Barber’s Adagio For Strings receives its world premiere on NBC radio

Adagio for Strings is a work for string orchestra, arranged by the American composer Samuel Barber from the second movement of his String Quartet. Barber finished the piece in 1936, and in 1938, it was conducted by Arturo Toscanini. Toscanini’s conducting was recorded at 8H Studio for radio broadcasting. Toscanini took the piece on tour to Europe and South America. It is disputed whether the first performance of Adagio in Europe was conducted by Toscanini or Henry J. Wood. Barber has rejected many arrangements published by G. Schirmer, such as the organ arrangement by William Strictland.

The piece begins with a B flat played by the violins. Lower strings enter two beats after the violins. At practical tempo, the piece length is about eight minutes. The piece’s reception was generally positive, with Alexander J. Morin writing that Adagio for Strings contains “full of pathos and cathartic passion, rarely leaves a dry eye.” The piece can be heard in many TV shows and movies.

The recording of the 1938 world premiere, with Arturo Toscanini conducting the NBC Symphony Orchestra, was selected in 2005 for permanent preservation in the National Recording Registry at the United States Library of Congress.[18] Since the 1938 recording, it has frequently been heard throughout the world, and was one of the only American pieces to be played in the Soviet Union during the Cold War.

The Adagio was broadcast over the radio at the announcement of Franklin D. Roosevelt‘s death. It was also played at the funeral of Albert Einstein and at the funeral of Princess Grace of Monaco. It was performed in 2001 at Last Night of the Proms in the Royal Albert Hall to commemorate the victims of the September 11 attacks, replacing the traditional upbeat patriotic songs. It was also played during the opening ceremonies of the Vancouver 2010 Winter Olympics. In 2004, listeners of the BBC’s Today program voted Adagio for Strings the “saddest classical” work ever, ahead of “Dido’s Lament” from Dido and Aeneas by Henry Purcell, the “Adagietto” from Gustav Mahler’s 5th symphony, Metamorphosen by Richard Strauss and Gloomy Sunday as sung by Billie Holiday.

Adagio for Strings can be heard on many film, TV, and video game soundtracks, including Oliver Stone’s Oscar-winning film Platoon, David Lynch’s 1980 Oscar-nominated film The Elephant Man, Michael Moore’s documentary Sicko, Lorenzo’s Oil, A Very Natural Thing, Reconstruction, and Jean-Pierre Jeunet’s Oscar-nominated 2001 film Amélie. It has been heard in episodes of The Simpsons, Big Brother 2010 (UK), That Mitchell and Webb Look, The Boondocks, South Park, Seinfeld, ER (TV series), Big Love. A recorded performance by the London Symphony Orchestra was, for a time, the highest selling classical piece on iTunes. The work is extremely popular in the electronic dance music genre, notably in trance. Artists who have covered it include Armin van Buuren, William Orbit, Ferry Corsten, and Tiesto. eRa included this song in their new album Classics.

 1338 – Ly Anh Tong is enthroned as emperor of Vietnam at the age of two, starting a 37-year reign.

1499 – Publication of the Catholicon in Treguier (Brittany). This Breton-French-Latin dictionary was written in 1464 by Jehan Lagadeuc. It is the first Breton dictionary as well as the first French dictionary.

1530 – The St. Felix’s Flood destroys the city of Reimerswaal in the Netherlands.

1605 – Gunpowder Plot: A conspiracy led by Robert Catesby to blow up the English Houses of Parliament is thwarted when Sir Thomas Knyvet, a justice of the peace, finds Guy Fawkes in a cellar below the House of Lords.

1688 – Glorious Revolution begins: William of Orange lands at Brixham.

1743 – Coordinated scientific observations of the transit of Mercury are organized by Joseph-Nicolas Delisle.

1757 – Seven Years’ War: Frederick the Great defeats the allied armies of France and the Holy Roman Empire at the Battle of Rossbach.

1768 – Treaty of Fort Stanwix, the purpose of which is to adjust the boundary line between Indian lands and white settlements set forth in the Proclamation of 1763 in the Thirteen Colonies.

1780 – French-American forces under Colonel LaBalme are defeated by Miami Chief Little Turtle.

1831 – Nat Turner, American slave leader, is tried, convicted, and sentenced to death in Virginia.

1838 – The Federal Republic of Central America begins to disintegrate when Nicaragua separates from the federation.

1854 – Crimean War: The Battle of Inkerman.

1862 – American Civil War: Abraham Lincoln removes George B. McClellan as commander of the Union Army for the second and final time.

1862 – Indian Wars: In Minnesota, 303 Dakota warriors are found guilty of rape and murder of whites and are sentenced to hang. 38 are ultimately executed and the others reprieved.

1872 – Women’s suffrage: In defiance of the law, suffragist Susan B. Anthony votes for the first time, and is later fined $100.

1895 – George B. Selden is granted the first U.S. patent for an automobile.

1911 – After declaring war on the Ottoman Empire on September 29, 1911, Italy annexes Tripoli and Cyrenaica.

1913 – King Otto of Bavaria is deposed by his cousin, Prince Regent Ludwig, who assumes the title Ludwig III.

1916 – The Kingdom of Poland is proclaimed by the Act of November 5th of the emperors of Germany and Austria-Hungary.

1916 – The Everett Massacre takes place in Everett, Washington as political differences lead to a shoot-out between the Industrial Workers of the World organizers and local police.

1917 – October Revolution: In Tallinn, Estonia, Communist leader Jaan Anvelt leads revolutionaries in overthrowing the Provisional Government (As Estonia and Russia are still using the Julian Calendar, subsequent period references show an October 23 date).

1917 – St. Tikhon of Moscow is elected the Patriarch of Moscow and of the Russian Orthodox Church.

1937 – Adolf Hitler holds a secret meeting and states his plans for acquiring “living space” for the German people.

1940 – Franklin D. Roosevelt is elected to a third term as President of the United States.

1942 – The Second Battle of El Alamein is won by the British in El Alamein, Egypt.

1945 – Colombia joins the United Nations.

1967 – The Hither Green rail crash in the United Kingdom kills 49 people. The survivors include Robin Gibb of the Bee Gees.

1968 – United States presidential election, 1968: Republican Richard Nixon wins the American presidency, in what turned out to be a decades-long realignment election.

1970 – Vietnam War: The United States Military Assistance Command in Vietnam reports the lowest weekly American soldier death toll in five years (24).

1983 – Byford Dolphin diving bell accident kills five and leaves one severely injured.

1986 – USS Rentz, USS Reeves and USS Oldendorf visit Qingdao (Tsing Tao) China – the first US Naval visit to China since 1949.

1987 – Govan Mbeki is released from custody after serving 24 years of a life sentence for terrorism and treason.

1990 – Rabbi Meir Kahane, founder of the far-right Kach movement, is shot dead after a speech at a New York City hotel.

1995 – Andre Dallaire attempts to assassinate Prime Minister Jean Chretien of Canada. He is thwarted when the Prime Minister’s wife locks the door.

1996 – President of Pakistan Farooq Ahmed Khan Leghari dismisses the government of Prime Minister Benazir Bhutto and dissolves the National Assembly of Pakistan.

2006 – Saddam Hussein, former president of Iraq, and his co-defendants Barzan Ibrahim al-Tikriti and Awad Hamed al-Bandar are sentenced to death in the al-Dujail trial for the role in the massacre of the 148 Shi’as in 1982.

2007 – China’s first lunar satellite, Chang’e 1 goes into orbit around the Moon.

2009 – US Army Major Nidal Malik Hasan allegedly kills 13 and wounded 30 at Fort Hood, Texas in the largest mass shooting ever at a US military installation.

BoA: Feeling The Heat?

So a couple of weeks ago I highlighted 2 posts by Bill Black and Randall Wray on how Title Fraud, Securities Fraud, and Accounting Fraud (which they call Control Fraud) had the potential to force Bank of America into receivership and contending that was the proper course of action.

Bank of America has issued a response (also on The Huffington Post) and today Black and Wray published the first part of a 2 part counter-response.

I thought it might be of interest.

Let’s Set the Record Straight on Bank of America: Open the Books!

William K. Black and L. Randall Wray, The Huffington Post

Posted: November 4, 2010 06:06 PM

The demands by investors that Bank of America repurchase loans and securities sold under false “reps and warranties” may cause exceptional losses if those making the demands document the broader fraud by the lenders. The article “Bank of America Resists Rebuying Bad Loans” shows that Bank of America’s potential loss exposure to Fannie and Freddie is staggering: “[Bank of America] said it sold $1.2 trillion in loans to the government-controlled housing giants from 2004 to 2008 and has thus far received $18 billion in repurchase claims on those loans.”



As argued in a recent article by Jonathon Weil, the bank is nearing a “tipping point” as markets recognize it is “cooking the books,” vastly overstating the value of its assets as it refuses to recognize the true scale of losses on its purchase of Countrywide. Ironically, it still carries on its books $4.4 billion of fictional “goodwill” value created by overpaying for Countrywide (a notorious control fraud), as well as $142 billion of home equity loans that are worth far less. A more honest accounting of “good will” and of the value of home equity loans would take a big bite out of Bank of America’s market capitalization ($116 billion), which has lost 41 percent of its value since April 15. The markets are moving ever closer to shutting down the institution, but Moynihan is not “putting up with” the demand by investors for Bank of America to come clean on its fraudulent practices.



The bank’s response primarily criticizes its borrowers as deadbeats, yet the data it provides support points we have made in our prior posts, including Bill Black’s posts about the banks working with the Chamber of Commerce and Chairman Bernanke to extort the Financial Accounting Standards Board (FASB) in order to destroy the integrity of the accounting rules requiring banks to recognize losses on their bad loans. We have explained why the fraudulent officers controlling many lenders followed a strategy of making bad loans at premium yields in order to maximize (fictional) accounting income and their bonuses. This dynamic drove the current crisis. These frauds hyper-inflated the housing bubble and caused trillions of dollars of losses.

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