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You are here: Home / Archives for 2009

Archives for 2009

Grand Old Hypocrites

by John Cole|  March 18, 20096:49 pm| 61 Comments

This post is in: Politics, Republican Stupidity

Someone get Judd Gregg the smelling salts, because he has come down with a case of the vapors:

“That would be the Chicago approach to governing: Strong-arm it through. You’re talking about the exact opposite of bipartisan. You’re talking about running over the minority, putting them in cement and throwing them in the Chicago River.”

I think he meant cement shoes, but I’m not going to nitpick- that idea has a great deal of appeal to me right about now. At any rate, this is a Republican we are talking about, so you know where this is going. Judd Gregg was for reconciliation before he was against it.

Meanwhile, no discussion of the process by which Republicans governed when they were in charge would be complete without this trip down memory lane:

When bills do make it to the floor for a vote, the debate generally resembles what one House aide calls “preordained Kabuki.” Republican leaders in the Bush era have mastered a new congressional innovation: the one-vote victory. Rather than seeking broad consensus, the leadership cooks up some hideously expensive, favor-laden boondoggle and then scales it back bit by bit. Once they’re in striking range, they send the fucker to the floor and beat in the brains of the fence-sitters with threats and favors until enough members cave in and pass the damn thing. It is, in essence, a legislative microcosm of the electoral strategy that Karl Rove has employed to such devastating effect.

A classic example was the vote for the Central American Free Trade Agreement, the union-smashing, free-trade monstrosity passed in 2005. As has often been the case in the past six years, the vote was held late at night, away from the prying eyes of the public, who might be horrified by what they see. Thanks to such tactics, the 109th is known as the “Dracula” Congress: Twenty bills have been brought to a vote between midnight and 7 a.m.

CAFTA actually went to vote early — at 11:02 p.m. When the usual fifteen-minute voting period expired, the nays were up, 180 to 175. Republicans then held the vote open for another forty-seven minutes while GOP leaders cruised the aisles like the family elders from The Texas Chainsaw Massacre, frantically chopping at the legs and arms of Republicans who opposed the measure. They even roused the president out of bed to help kick ass for the vote, passing a cell phone with Bush on the line around the House cloakroom like a bong. Rep. Robin Hayes of North Carolina was approached by House Speaker Dennis Hastert, who told him, “Negotiations are open. Put on the table the things that your district and people need and we’ll get them.” After receiving assurances that the administration would help textile manufacturers in his home state by restricting the flow of cheap Chinese imports, Hayes switched his vote to yea. CAFTA ultimately passed by two votes at 12:03 a.m.

I think the nation will be fine with legislation passed with only a majority vote, and Judd Gregg can go pound salt.

Grand Old HypocritesPost + Comments (61)

Releasing the List

by John Cole|  March 18, 20096:06 pm| 45 Comments

This post is in: Domestic Politics

A court ruling the Merrill Lynch folks won’t like:

A New York state judge ruled Wednesday afternoon that New York’s attorney general could disclose the names of executives at Merrill Lynch who received 2008 bonuses ahead of Bank of America’s acquisition of the brokerage firm, rejecting arguments that the information was a trade secret.

***

Mr. Cuomo praised the ruling. “Today’s decision in the Bank of America case is a victory for taxpayers,” he said in a statement. “Let the sun shine in. Justice Fried’s decision will now lift the shroud of secrecy surrounding the $3.6 billion in premature bonuses Merrill Lynch rushed out in early December. Taxpayers demand and deserve transparency and now they will finally get it.”

Merrill employees were collectively given billions of dollars in bonuses shortly before its sale to Bank of America closed. Around the same time, Bank of America learned that Merrill’s fourth-quarter loss would be much larger than expected, and the shortfall forced Bank of America’s to go to the government to seek more financial aid.

We’ll see how that plays out.

Releasing the ListPost + Comments (45)

The boldest experiment in banking history

by DougJ|  March 18, 20094:12 pm| 70 Comments

This post is in: Outrage

From TPM:

AIG CEO Edward Liddy: We’ll ask the bonus recipients to give half the money back.

It’s hard not to think of the scene from the Alberts Brooks classic “Lost In America” where Brooks asks a casino to give them back the money his wife lost at the tables:

Brooks: As the boldest experiment in advertising history, you give us our money back.

Desert Inn Casino Manager: I beg your pardon?

Brooks: See, you’re the casino that gives. You know, I’m in advertising. These are professional opinions you’re getting.

(And, yes, Joe Cassano should be forced to say “I lost the nest-egg.”)

The boldest experiment in banking historyPost + Comments (70)

Well-run banks

by DougJ|  March 18, 200912:47 pm| 166 Comments

This post is in: Domestic Politics, Assholes

This is precious:

Then there is Richard “Is This America?” Kovacevich, the chairman of Wells Fargo. Late last week, Kovacevich gave a talk at Stanford University, complaining about how unfair it is that the government forced his bank to take $25 billion in bailout money last year when it could have easily raised private capital — and then compounded that outrage by changing the terms of the deal and forcing Wells to cut its dividend. Kovacevich said it was “asinine” for the Treasury to order his and other big banks to undergo a special “stress test,” explaining that well-run banks like Wells were routinely doing their own stress tests.

This isn’t to say that Wells Fargo isn’t well-run. For all I know, it is. But how on earth could any bank be making the “trust us, we know what we’re doing” argument at this point?

The arrogance of the banking world seems to know no bounds. A friend of mine in finance, someone I genuinely like, even if he was predicting Lehman would bounce back this summer, told me “Vikram Pandit should just tell the government `leave me alone for two years and let me do my job'”.

It’s amazing.

Well-run banksPost + Comments (166)

The Graduates

by John Cole|  March 18, 200911:23 am| 33 Comments

This post is in: Dog Blogging

Big night at Cole HQ last night, as Ginny and Guesly both graduated from the first round of obedience school.

Mom says they will start the next round in a couple of weeks.

The GraduatesPost + Comments (33)

Sad News

by John Cole|  March 18, 200911:22 am| 16 Comments

This post is in: Open Threads

Chuck Butcher, longtime reader and friend of the blog, lost his son last night. Go pass on your condolences.

Sad NewsPost + Comments (16)

About Those AIG Contracts

by John Cole|  March 18, 200911:20 am| 23 Comments

This post is in: Domestic Politics

Lawrence Cunningham in the NY Times:

If the government is serious about finding a legitimate basis for abrogating these payments, officials must look to basic legal principles. And if A.I.G. is serious that it is legally bound to pay these bonuses, it must do more than say nonpayment would expose it to damages or penalties. Nor is it enough to invoke the sanctity of contracts, because our legal and business system recognizes plenty of valid excuses from contractual duty and even justification for breaching.

And look what just happened in California:

In the first ruling of its kind, a bankruptcy judge held the city of Vallejo, Calif. has the authority to void its existing union contracts in its effort to reorganize, holding public workers do not enjoy the same protections Congress gave union workers at private companies.

Municipal bankruptcy is so rare that no judge had yet ruled on whether Congressional reforms in the 1990s that required companies to provide worker protections before attempting to dissolve union contracts also applied to public workers’ union contracts.

Not sure why Liddy wants to pretend his contractual obligations are so sacred.

About Those AIG ContractsPost + Comments (23)

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