Tag: Politics

The recent news of a thirteen billion dollar settlement agreed to by JP Morgan with the Justice Department to resolve an array of crisis-related mortgage cases may seems like a large chunk of change but in the grand scheme of the banks assets and the losses to the global economy its a drop in the bucket. JP Morgan’s current assets are valued at $$2.25 trillion and the losses to Americans alone is estimated at $22 trillion. Meanwhile, papers like The Wall Street Journal and The New York Post, both owned by Rupert Murdock, are calling the settlement “a shakedown” and “robbery.”

There are a lot of questions about the details of the settlement that Dimon personally helped negotiate with Attorney General Eric Holder in private meetings, cutting the deal without admission of any wrong doing. The New York Times‘ assistant business and financial editor, Gretchen Morgenson commented about this unusual special treatment to Bill Moyers in an interview on Moyers & Company

   BILL MOYERS: Do you find it remarkable – Jamie Dimon asking for a personal meeting with the Attorney General, Eric Holder to decide, in private, on a penalty?…

   GRETCHEN MORGENSON: It seems unusual to me and it does smack of favoritism, special treatment. It certainly was unusual I would say for Eric Holder, the Attorney General of the United States of America, to have a personal meeting with someone that his office is negotiating a settlement with. That raised eyebrows with me. I know I would not be able to get that meeting if I asked – and if I implored.

   I think it really sends a signal, also which is disturbing that again – two sets of rules in America. There’s one set for the people who are in positions of power, certainly in the financial world – one set of rules perhaps for them. And one set for the rest of us. I really don’t understand why Eric Holder would not have decided that it was the optics just didn’t look that good for him to meet with Jamie Dimon, but maybe there is something behind it that I don’t know.

At Democracy Now!, Yves Smith, the proprietress at naked capitalism, sat down with Amy Goodman to discuss the deal and how it is being misreported.

A $13 Billion Reminder of What’s Wrong

by Gretchen Morgansen, The New york Times

t was the deal of the week – a possible $13 billion settlement between JPMorgan Chase and the Justice Department to resolve an array of crisis-related mortgage cases.

While arguments over the deal’s terms and numbers are to be expected, the discussion so far has seemed to miss its significance as a teaching moment. This possible settlement once again depicts the extensive and damaging behavior that led to the 2008 crisis and its aftermath. For those with short memories, the deal is a refresher course in how far-off the rails our largest financial institutions veered in the years leading up to the mess.

It also stands as a reminder that not enough has been done to fix the flawed incentives in our sprawling and powerful financial system. This applies to both the private sector – the mighty banks – and their supposed minders, the regulators.

The Ridiculous “Jamie Dimon as Victim” Meme on the Pending JP Morgan Mortgage Settlement

by Yves Smith, naked capitalism

Nothing like having a credulous, leak-dependent media to carry your messages.

There’s been a remarkable hue and cry about the pending JP Morgan settlement, as if the amount is somehow too high. As we’ve discussed repeatedly, the director of financial stability for the Bank of England, Andrew Haldane, already ascertained that a mere 1/20th of low-end estimate of what the banks ought to pay for all the damage they did would wipe our their market capitalization. So even if you think JP Morgan is only half as culpable as other banks (a point we will debunk in a post tomorrow) it would only be half as dead.

In other words, Dimon and all his crew should thank their lucky stars that they got off so well and didn’t have their banks turned into utilities. But that moment passed, so now we are haggling over price with ingrates.

Nobody Should Shed a Tear for JP Morgan Chase

by Matt Taibbi. Rollingstone

A lot of people all over the world are having opinions now about the ostensibly gigantic $13 billion settlement Jamie Dimon and JP Morgan Chase have entered into with the government.

The general consensus from most observers in the finance sector is that this superficially high-dollar settlement – worth about half a year’s profits for Chase – is an unconscionable Marxist appropriation. It’s been called a “robbery” and a “shakedown,” in which red Obama and his evil henchman Eric Holder confiscated cash from a successful bank, as The Wall Street Journal wrote, “for no other reason than because they can and because they want to appease their left-wing populist allies.”

Look, there’s no denying that this is a lot of money. It’s the biggest settlement in the history of government settlements, and it’s just one company to boot. But this has been in the works for a long time, and it’s been in the works for a reason. This whole thing, lest anyone forget, has its genesis in a couple of state Attorneys General (including New York’s Eric Schneiderman and Delaware’s Beau Biden) not wanting to sign off on any deal with the banks that didn’t also address the root causes of the crisis, in particular the mass fraud surrounding the sale and production of subprime mortgage securities.

The cost of the financial crisis hits Americans harder than banks

by Heidi Moore, The Guardian

As you rise up the financial ladder, the consequences of the financial crisis are increasingly arbitrary

What’s the real cost of a financial crisis? Apparently, it depends on who’s paying.

If you’re Jamie Dimon, the CEO of JP Morgan Chase, or Brian Moynihan, the CEO of Bank of America, it’s a price your $2tn bank can easily afford to make trouble go away.

If you’re a homeowner, it’s a price that has rendered your past five years a struggle of financial anxiety. If you’re an American, it’s a price that has resulted in a recession and recovery characterized by historically high poverty – with 42 million Americans on food stamps – and historically low rates of Americans working, with only 63% of the population gainfully employed.

As you rise up the financial ladder, the consequences of the financial crisis are increasingly arbitrary. The Department of Justice is looking for scalps – finally, after five years of drowsy hibernation – but some banks are whining about merely getting haircuts.

This week, two mortgage-crisis settlements hit the news: one potential and one official. The idea of a $13bn rumored fine to JP Morgan and an $848m fine to Bank of America would indicate two things.

“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 thea Pundits”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: The Big Kludge

The good news about HealthCare.gov, the portal to Obamacare’s health exchange, is that the administration is no longer minimizing its problems. That’s the first step toward fixing the mess – and it will get fixed, although it’s anyone’s guess whether the new promise of a smoothly functioning system by the end of November will be met. We know, after all, that Obamacare is workable, since many states that chose to run their own exchanges are doing quite well.

But while we wait for the geeks to do their stuff, let’s ask a related question: Why did this thing have to be so complicated in the first place?

It’s true that the Affordable Care Act isn’t as complex as opponents make it out to be. Basically, it requires that insurance companies offer the same policies to everyone; it requires that each individual then buy one of these policies (the individual mandate); and it offers subsidies, depending on income, to keep insurance affordable.

E. J. Dionne, Jr.: First, Admit the Problem

Here’s the mistake made by President Obama and the Democrats that nobody is talking about: They have been too fearful of confronting our country’s three-year obsession with the wrong problem.

And here is the tea party’s greatest victory: It has made the wrong problem the center of policymaking.

The wrong problem is the deficit. The right problem is sluggish growth and persistent unemployment.

A broad coalition of organizations, including the Campaign for America’s Future and Social Security Works, is joining Sen. Bernie Sanders in a petition drive to resist cuts to Social Security, Medicaid and Medicare. It only takes a few moments to sign; it’s that easy. [..]

The threat is very real, and these cuts could take place with very little warning. On a personal note: I signed. I did it because a lot of people would suffer needlessly by the kind of deal they’re cooking up. I did it because I think it’s wrong to allow the privileged and powerful to overrule the will of the people. And frankly, I did it because I’m scared. This deal could be done before most Americans even see it coming.

It’s fast and easy to sign this petition. It only took me seven seconds. Here are seven reasons why you should. [..]

1. Republicans are still demanding “entitlement cuts.”

[..]

2. Some of these cuts are in the President’s budget.

[..]

3. The “chained CPI” is a deep cut to Social Security benefits.

[..]

4. The chained CPI isn’t fair, either.

[..]

5. The cuts to Medicaid and Medicare are both inhumane and cumbersome.

[..]

6. Millennials are already getting a raw deal. This would make it worse.

[..]

7. In a democracy, the people — not corporations are billionaires — are supposed to decide.

Stand with Senator Bernie Sanders and our coalition partners in demanding, “No grand bargain in exchange for cuts to Social Security, Medicare and Medicaid benefits.”

Bernie is serving on the Budget Conference Committee which will be negotiating a new federal budget over the next few months — and where a deal could be struck to slash Social Security, Medicare and Medicaid.

As the founder of the Defending Social Security Caucus, Bernie is fighting every day to protect our earned benefits. Stand with Senator Bernie Sanders and a diverse coalition of thousands of fellow progressives now and demand that Congress and the President oppose any grand bargain which cuts Social Security, Medicare and Medicaid benefits.

Add your name today!

He’s right, depending on how fast you can type and press enter, just seven seconds. So it for yourself and future generations.

“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 Steve Kornacki: The guests were not listed for this Sunday.

This Week with George Stephanopolis: Guests on this Sunday’s “This Week” are: former Vice President Dick Cheney; Sen. John Barrasso (R-WY) and Sen. Joe Manchin (D-WV).

The roundtable guests are Democratic strategist and ABC News contributor Donna Brazile; co-host of CNN’s Crossfire S.E. Cupp; former Vermont governor and founder of Democracy for America Howard Dean; and Weekly Standard editor Bill Kristol.

Face the Nation with Bob Schieffer: Mr. Schieffer’s guests are Rep. Darrell Issa (R-Ca); and Sen. Jeanne Shaheen (D-NH).

His panel guests are The Wall Street Journal‘s Peggy Noonan; former Press Secretary to LBJ and former Publisher of the Dallas Times Herald, Tom Johnson; Bob Woodward of the Washington Post; and Phil Shenon, author of “A Cruel and Shocking Act: The Secret History of the Kennedy Assassination.”

Meet the Press with David Gregory: On this Sunday’s MTP the guests are governors John Kasich (R-OH) and Steve Beshear (D-KY);  NBC’s Chief Foreign Affairs correspondent Andrea Mitchell and former chairman of the House Homeland Security Committee Rep. Peter King (R-NY).

At the roundtable the guests are 2012 Republican Presidential Candidate Rick Santorum; former Michigan Democratic Governor Jennifer Granholm; President of the Center for American Progress Neera Tanden; and Republican strategist Alex Castellanos.

State of the Union with Candy Crowley: Ms. Crowley’s guests are House Intelligence Chairman Mike Rogers (R-MI);  Dr. Ezekiel Emanuel, a Health Policy Adviser to the Obama Administration from 2009-2011 and Congressman John Fleming, a Republican and one-time Louisiana Family Doctor of the Year.

Joining her for a panel discussion are CNN Political Commentators Ross Douthat and Cornell Belcher will join A.B. Stoddard from The Hill.

On October 26th, the 12th anniversary of the PATRIOT Act,

The full list, in order of appearance, includes:

Daniel Ellsberg, “Pentagon Papers” whistleblower

Phil Donahue, television talk-show pioneer

US Rep. John Conyers Jr. (D-MI), ranking Democrat on the House Judiciary Committee

David Segal, executive director of Demand Progress

Maggie Gyllenhaal, actor and activist

Oliver Stone, director of The Untold History of the United States and Nixon

John Cusack, actor and activist

Wil Wheaton, actor and writer

Molly Crabapple, artist and writer

Jesselyn Radack, U.S. Department of Justice whistleblower and national security and human rights director at the Government Accountability Project

J. Kirk Wiebe, NSA whistleblower

Mark Klein, AT&T whistleblower who revealed the telecommunications company’s collaboration with the NSA in collecting customer data

Thomas Drake, NSA whistleblower

Cindy Cohn, Legal Director at the Electronic Frontier Foundation

Dan Choi, LGBTQ activist and Iraq War veteran

Lawrence Lessig, Roy L. Furman Professor of Law and Leadership at Harvard Law School

“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 thea Pundits”.

Follow us on Twitter @StarsHollowGzt

Alan Grayson: Congressional oversight of the NSA is a joke. I should know, I’m in Congress

I’ve learned far more about government spying on citizens from the media than I have from official intelligence briefings

In the 1970s, Congressman Otis Pike of New York chaired a special congressional committee to investigate abuses by the American so-called “intelligence community” – the spies. After the investigation, Pike commented:

  “It took this investigation to convince me that I had always been told lies, to make me realize that I was tired of being told lies.”

I’m tired of the spies telling lies, too. [..]

Pike’s investigation initiated one of the first congressional oversight debates for the vast and hidden collective of espionage agencies, including the Central Intelligence Agency (CIA), the Federal Bureau of Investigation (FBI), and the National Security Agency (NSA). Before the Pike Commission, Congress was kept in the dark about them – a tactic designed to thwart congressional deterrence of the sometimes illegal and often shocking activities carried out by the “intelligence community”. Today, we are seeing a repeat of this professional voyeurism by our nation’s spies, on an unprecedented and pervasive scale.

Charles M. Blow: Billionaires’ Row and Welfare Lines

A report last week in The New York Times says that developers are turning 57th Street in Manhattan into “Billionaires’ Row,” with apartments selling for north of $90 million each. [..]

It’s a great time to be a rich person in America. The rich are raking it in during this recovery.

But in the shadow of their towering wealth exists a much less rosy recovery, where people are hurting and the pain grows. [..]

The number of Americans now enrolled in the Supplemental Nutrition Assistance Program (SNAP) is near record highs, and yet both houses of Congress have passed bills to cut funding to the program. The Senate measure would cut about $4 billion, while the House measure would cut roughly ten times as much, dropping millions of Americans from the program. [..]

There is an inherent tension – and obscenity – in the wildly divergent fortunes of the rich and the poor in this country, especially among our children. The growing imbalance of both wealth and opportunity cannot be sustained. Something has to give.

“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 thea Pundits”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: Addicted to the Apocalypse

Once upon a time, walking around shouting “The end is nigh” got you labeled a kook, someone not to be taken seriously. These days, however, all the best people go around warning of looming disaster. In fact, you more or less have to subscribe to fantasies of fiscal apocalypse to be considered respectable.

And I do mean fantasies. Washington has spent the past three-plus years in terror of a debt crisis that keeps not happening, and, in fact, can’t happen to a country like the United States, which has its own currency and borrows in that currency. Yet the scaremongers can’t bring themselves to let go. [..]

As I’ve already suggested, there are two remarkable things about this kind of doomsaying. One is that the doomsayers haven’t rethought their premises despite being wrong again and again – perhaps because the news media continue to treat them with immense respect. The other is that as far as I can tell nobody, and I mean nobody, in the looming-apocalypse camp has tried to explain exactly how the predicted disaster would actually work.

New York Times Editorial: In Search of Republican Grown-Ups

The leaders of the Republican Party, in full flight from their disastrous and juvenile shutdown stunt, now want to restock their ranks with grown-ups. “Let’s face it: it was not a good maneuver,” Senator Orrin Hatch of Utah told The Times recently. “You’ve got to have the adults running the thing.”

Mr. Hatch and other establishment senators believe that grown-ups would not threaten the country’s full faith and credit, or keep the government closed, in order to get their way. That’s true, but it’s a rather pallid definition of maturity. A mature and responsible political party would do more than prevent a government default; it would offer serious solutions to the nation’s most pressing problems instead of running from them.

And it is there that Republicans – whether adults or Tea Party members – continue to let the public down.

You could label this “what were they thinking” but we’re talking about the Republican Party here. IT seems that in the midst of the latest “crisis,” the failure to launch of the Healthcare.gov web site, the genius Republicans of the House of Representative decided to ask a murder suspect to testify as an computer expert. No, I am not pulling you leg.

House Republicans Asked Murder Suspect John McAfee to Testify on Obamacare Website

by David, Crooks and Liars

According to emails obtained by CNBC, House Republicans asked the founder of McAfee Associates to “guide our oversight and review” of the Affordable Care Act website.

In 2012, McAfee went on the run from Belize authorities after being suspected of the murder of his neighbor. He was later detained in Guatemala and deported to the United States, but has not been charged with a crime.

“This is the Committee of jurisdiction for the Patient Protection and Affordable Care Act (or Obamacare),” House Committee on Energy and Commerce counsel Sean Hayes wrote to McAfee’s lawyer on Oct. 14. “For three years we have been monitoring the implementation of the law and have been trying to dig into what has happened with the Exchange rollout.”

“Given the failures of Healthcare.gov, and Mr. McAfee’s expertise, I was hoping he might be able to discuss his views with staff on the hill,” the email continued. “It would be an informal discussion: we would take notes but these would not be for attribution, it would mainly guide our oversight and review of the program.”

“This would hopefully not be a heavy lift for him: what problems could lead to the compromise of personal identifying information? What could we be doing to prevent data or identify theft? What advice generally does he have?”

The deal fell through when the House wouldn’t pay for Mr. McAfee’s travel expenses. In case you aren’t aware of the hilarity of this invitation, Rachel Maddow gives us the Cliff Note version of Mr. McAfee’s biography

Can you imagine the hilarity of McAfee’s testimony as his mind wanders from the technicalities of launcing a web site to his sexual prowess and drug expertise? C-Span’s ratings would soar.

The prisoners on trial before military tribunal at Guantanamo for their attacks on the United States are unable to present evidence that they were tortured by the CIA even though they are facing the death penalty. This is what has been happening:

On Tuesday, October 22, the lawyers for the September 11 accused argued that the Guantanamo military commissions’ protective order (pdf) violates the United Nations Convention Against Torture. The protective order states that the defendant’s “observations and experiences” of torture at CIA black sites are classified. Defense counsel say that this violates the Convention Against Torture’s requirement that victims of torture have “a right to complain” to authorities in the countries where they are tortured, and makes the commission into “a co-conspirator in hiding evidence of war crimes.”

It is not only the defendants’ lawyers who object to the protective order. The ACLU has called the restrictions on detainees’ testimony “chillingly Orwellian.” Earlier this year, the Constitution Project’s bipartisan, independent Task Force on Detainee Treatment (for which I served as staff investigator) found that the military commissions’ censorship of detainees’ descriptions of their own torture could not be justified on grounds of national security, and violated “the public’s First Amendment right of access to those proceedings, the detainees’ right to counsel, and counsel’s First Amendment rights.” This month, the European Parliament passed a resolution that called on the United States “to stop using draconian protective orders which prevent lawyers acting for Guantánamo Bay detainees from disclosing information regarding any detail of their secret detention in Europe.”

The reason the prisoners are being denies their rights to present the evidence of torture, even though they are facing the death penalty, is this:

In April 2009, over the CIA’s objections, Obama declassified four Office (pdf) of Legal (pdf) Counsel (pdf) (OLC) (pdf) opinions that described in graphic detail the brutal techniques that the CIA used against captives after September 11, because in his judgment their release was “required by the rule of law.”

But today, the administration takes the position (pdf) that the release of the OLC memos only declassified the CIA’s use of torturous interrogation techniques “in the abstract.” The details of any individual detainee’s treatment in CIA custody are still top secret. The CIA claims this is necessary because disclosures about individual interrogations would “provide future terrorists with a guidebook on how to evade such questioning,” and “provide ready-made ammunition for al-Qa’ida propaganda.”

The one thing that the defense lawyers, the prosecutors and the judges all agree on, President Barack Obama could fix this.

Paul Kiel – January 30, 2008, 4:12 PM EST

Sen. Joe Biden (D-DE) said that he’d been getting the impression that Mukasey really thought about torture in relative terms, and wanted to know if that was so. Is it OK to waterboard someone if a nuclear weapon was hidden — the Jack Bauer scenario — but not OK to waterboard someone for more pedestrian information?

Mukasey responded that it was “not simply a relative issue,” but there “is a statute where it is a relative issue,” he added, citing the Detainee Treatment Act. That law engages the “shocks the conscience” standard, he explained, and you have to “balance the value of doing something against the cost of doing it.”

What digby said:

So basically, while we “do not torture” we have admitted “in the abstract” that we did torture, but if any of those tortured reveal the details of that torture the terrorists of the future will know how we torture and learn how to evade it. So we’re obviously still torturing. Am I missing something?>

No, digby, you didn’t miss a thing.

“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 thea Pundits”.

Follow us on Twitter @StarsHollowGzt

Will Bunch: U.S. Government Tech: Lousy at Health Care, Great at Flying Death Robots

Hey, remember that time when the U.S. had a Predator drone hovering over a suspected terrorist’s house in Yemen for four hours, and nothing happened because the 20-year-old junior officer with the missile-firing joystick couldn’t log into the damn operating system? How the entire system of fighting al-Qaeda around the world with unmanned aerial vehicles — planned for years by the Obama administration — failed to come online? And all the folks over at Fox News laughing and whooping it up, saying all the drone glitches proved that Obama is a fraud as president and that “big government” can’t do anything right?

Of course you don’t… that never happened. The reality is that when it comes to the science of flying death robots, the United States is the world leader. Our drone systems may not be 100 percent perfect, but they rarely fail. When it comes to killing people remotely from the air, nobody does it better.

Technologically, that is.

Richard (RJ) Eskow: Negotiate the Budget — but Fight for the Role of Government, Too

Democrats in the White House are confronted with a dilemma. On the one hand, the clock’s ticking on their temporary budget deal with the Republicans. If it runs out and there’s no new agreement, we run the risk of a default and the government could shut down again. But the need to negotiate places them in a position where they might appear to legitimize the GOP’s extreme positions — positions which have been immortalized in a series of Republican budgets.

In the short term, Democrats need to negotiate. But in the longer term, we urgently need a real debate about the role of government in this country — a debate which highlights the ever-widening gulf in values between the Republican Party, as reflected in its budgets, and the American people.

It would be tragic if Democrats won a battle, but the nation continued to lose a war.