NYT: Justice Dept. Sets Record In Penalties For Fraud
The Justice Department collected a record $24.7 billion in penalties from fraud and other cases in the 2014 fiscal year, the agency said on Wednesday, as fines against banks for financial misconduct soared. Collections from civil and criminal actions, including money collected on behalf of other agencies, was $8 billion in 2013, and $13 billion in 2012. Collections in 2014 were bolstered by multibillion-dollar payouts from JPMorgan Chase and Citigroup to resolve claims they misled investors about the quality of mortgage bonds in the run-up to the financial crisis, and include $11 billion in payments made to federal agencies or states. Payouts in the 2014 fiscal year, which ended Sept. 30, also include hundreds of millions of dollars in fines levied on UBS and Royal Bank of Scotland.
Bloomberg: Corporate U.S. Healthiest In Decades Under Obama With Lower Debt
Steve Wynn, founder of the Wynn Resorts Ltd. (WYNN) casino empire, once called President Barack Obama’s administration “the greatest wet blanket to business and progress and job creation in my lifetime.” Barry Sternlicht, chief executive officer of Starwood Property Trust Inc. (STWD), said Obamacare was driving down wage growth and “affecting spending and the desire to buy houses and everything else.” Corporate and economic statistics almost six years into his administration paint a different picture. Companies in the Standard & Poor’s 500 (SPX) Index are the healthiest in decades, with the lowest net debt to earnings ratio in at least 24 years, $3.59 trillion in cash and marketable securities, and record earnings per share. They are headed this year toward the fastest average monthly job creation since 1999, manufacturing is recovering and the U.S. has returned as an engine for global growth. The recovery, which stands in contrast to weak growth in Europe and Asia, has underpinned an almost threefold gain in the Standard & Poor’s 500 Index since March 2009.
“The U.S. is leading the way — we’re the only major economy with accelerating growth,” said Mark Zandi, chief economist in West Chester, Pennsylvania, for Moody’s Analytics Inc. and a registered Democrat who has advised both the Obama administration and Senator John McCain, a Republican. “Obama deserves some credit for that, but he probably won’t get it.” Barring any major disruptions, the economy is setting up for Obama to leave office on a high note, said Douglas Brinkley, a presidential historian and professor at Rice University in Houston. “History will eventually show that Obama inherited the Great Recession and resuscitated the economy,” Brinkley said in an interview. One example is General Motors Co. (GM), which last week regained its investment-grade debt rating from Standard & Poor’s only five years after the government-backed bankruptcy. Obama’s $49.5 billion bailout of the automaker in exchange for taxpayers owning 61 percent of the company kept it from being liquidated, an outcome that could have crippled parts suppliers and economies throughout most of 50 states, not just the Midwest. In the broader economy, consumers are buying again and homebuilding is increasing. The unemployment rate has declined to 6.1 percent, the lowest since 2008. The economy expanded at a 4.6 percent annualized rate in April through June. Obama’s 2010 health-care program will hold down consumer prices for years to come as millions of Americans obtain coverage, BNP Paribas SA and Credit Suisse Group AG said. The “Medicare cost miracle” resulted at least in part from Obama’s Patient Protection and Affordable Care Act, Nobel-Prize winning economist Paul Krugman wrote in a Sept. 1 New York times article.
The preliminary figures on second-quarter GDP looked good; the revised tally looked better; and the final report looks even better still. The U.S. economy grew at a 4.6% annual pace in the second quarter, matching the best performance since the recession ended in mid-2009. The increase in real gross domestic product was revised up from 4.2%, mainly because of higher exports and business investment, the Commerce Department said Friday. Americans also spent more on health care, but the gain was offset by lower spending on other services. Economists polled by MarketWatch had predicted GDP would be revised up to a seasonally adjusted 4.7%. Consumer spending, the main source of economic activity, was unchanged at 2.5% growth. The biggest gains came in business investment, a good sign for the economy in the months ahead. To provide some additional context, 4.6% growth is tied for the best quarter since the start of the Great Recession.
Happy Birthday to the best First Lady, America has been fortunate to have at the White House. Wishing First Lady Michelle Obama long life, happiness, love, laughter, and prosperity.
Presidential Daily Schedule (All Times Eastern):
11:0 AM EST: President Obama delivers remarks on signals intelligence programs, Department of Justice
Brian Beutler: Desperate, Last-Ditch Effort For Obamacare Haters Fails
After the Supreme Court upheld Obamacare in 2012, most reasonable people assumed the right had missed its one big shot at using the courts to destroy the law. But Obamacare mania isn’t an ailment that afflicts reasonable people, and so conservatives turned their attention to an even more far-fetched legal challenge. The short version is that if you take one phrase of the Affordable Care Act statute out of context,
it appears as if the law does not provide for premium tax credits on federally facilitate exchanges. Conservatives are thus asking the courts to invalidate and prohibit Obamacare subsidies in all Healthcare.gov states.
Well, a D.C. District Court judge has looked at this argument, and concluded that it’s total nonsense. I obviously agree. And if you agree, too then you also must conclude that the challengers and their supporters are either dishonest or so blinded by Obamacare hatred that they’ve lost the ability to read. There are no other interpretations.
President Barack Obama has already nominated more African-American judges and more LGBT judges than any previous president. On Thursday, he’ll announce the nomination of Staci Michelle Yandle, the first African-American lesbian federal judge he’s picked. Yandle, who’s in private practice, will be Obama’s pick for the district court for the Southern District of his home state of Illinois.
If confirmed, that would make her the first African-American judge ever on that court, and the first openly gay judge in the 7th Circuit, which covers Illinois, Indiana and Wisconsin. There’s another first among the four new nominees Obama will announce Thursday: Salvador Mendoza, Jr., currently a county Superior Court judge in Washington state, will be Obama’s pick for the district court for the Eastern District of his state, where he would be the first Hispanic judge in that position.
The Republic: Superior Court Judge Salvador Mendoza Jr. Of Tri-Cities Nominated To Become Federal Judge
A state judge from the Tri-Cities has been nominated by President Obama to become a federal judge for Eastern Washington. Salvador Mendoza Jr. was nominated on Thursday, and would be the first Hispanic to serve as a federal judge in Eastern Washington.
Sen. Patty Murray, D-Wash., says Mendoza has an inspiring life story, including working as a migrant farm worker in the Yakima Valley. Mendoza has been a Superior Court judge for Benton and Franklin counties since last year.
Organizing for Action, the political group set up to push President Obama’s political agenda, is looking to expand its roster.
OFA is launching what it calls a “Spring Fellowship program,” assigning more than 60 veteran organizers to train more than 1,400 new volunteers to promote items such as an immigration bill and Obama’s health care law.
“It’s about making sure that voices on our side are heard, and people are held accountable,” said Jon Carson, executive director of OFA.
The trainers — which include OFA alumni, long-time volunteers, and former fellows — will be located in 22 states. They will train fellows who hail from at least 29 states (plus Washington, D.C.), and range from college students to adults making their first foray into politics.
The program, which includes data and digital training, runs from Feb. 8 to April 15.
Reuters: Senate Approves $1.1 Trillion Bill To End Government Funding Battle
Washington’s battles over government funding ended with a whimper on Thursday as the U.S. Senate approved a $1.1 trillion spending bill that quells for nearly nine months the threat of another federal agency shutdown.
The measure, which funds thousands of government programs from the military to national parks through the September 30 fiscal year-end, passed by a strong, 72-26 majority. President Barack Obama is expected to sign it into law.
The vote came exactly three months after the end of a 16-day government shutdown in October that was waged over disputed funding of “Obamacare,” the president’s signature health care law.
Jonathan Cohn: Obamacare’s A “Bailout” Now? Conservative Critics Are Getting Desperate
Conservatives used to say Obamacare is socialized medicine. Now they say it is a “government bailout” of insurers. The new claim is just as misleading and cynical as the old one.
The latest conservative plaything is a pair of previously obscure Obamacare features: “reinsurance” and “risk corridors.” ….
…. Conservatives might object to reinsurance and risk corridors on principle, regardless of amounts involved. That would be a perfectly legitimate argument, except for one thing: Reinsurance and risk corridors are already a feature of some government programs, most prominent among them Medicare Part D…
What’s that? You haven’t heard Republicans attacking Medicare Part D an insurer bailout? Maybe that’s because of one other, obvious difference between Part D and the Affordable Care Act. Only one of them was signed into law by a guy named Barack Obama.
Julie Pace: AP Source: NSA Phone Data Control To Come To End
President Barack Obama on Friday will call for ending the government’s control of phone data from millions of Americans, but will not offer a plan for where the information should be held, a senior administration official said. While the move would mark a significant shift for the National Security Agency’s controversial bulk phone record collection program, it’s unclear how quickly the plan could be carried out or whether it will ultimately need congressional approval. The government will continue to hold the data for now, though Obama is ordering that, effective immediately, a judicial finding will be required to access the information.
Obama will announce the decisions in a highly anticipated speech at the Justice Department. The official said the president will call on the attorney general and intelligence community to recommend where to move the data before March 28, when the collection program comes up for reauthorization. The official says the administration will also consult with Congress on the data transfer. Privacy advocates say moving the data outside the government’s control could minimize the risk of unauthorized or overly broad searches by the NSA.
A presidential review panel proposed moving the data to the telephone companies or a third party. However, the phone providers have balked at changes that would put them back in control of the records, citing liability concerns if hackers or others were able to gain unauthorized access to the records. The moves are more sweeping than what many U.S. officials had been anticipating about the president’s surveillance decisions.
USA Today: 20 subpoenas Issued In N.J. Bridge Scandal
A newly formed special state committee investigating the George Washington Bridge scandal issued 20 subpoenas Thursday, including several to key staff members of New Jersey Gov. Chris Christie. The legislative committee sent subpoenas to 17 individuals and three institutions. None was immediately named.
Assemblyman John Wisinewski, who is leading the investigation, said no names would be revealed until the recipients were officially served. That could happen Friday. A New Jersey Senate committee is also investigating whether Christie’s top advisers orchestrated or covered up lane closures near the bridge for political purposes.
The Hill: AP Gives Award To Reporters Of Untruthful ‘Spanglish’ Story
The Associated Press’s recent error-filled article concerning the ObamaCare Spanish-language site apparently is the best story published by the AP over the last month.
The story claimed that the site was written in “Spanglish,” but the site is actually written in proper Spanish, a fact easily discerned by any fluent Spanish-language reader.
Michael Oreskes, AP’s senior managing editor, yesterday gave a “Best of the States” award to the reporters and editors involved in the ObamaCare Spanish-language hatchet job. In an email, Oreskes exalted the high-quality reporting that created this story — above and beyond other stories produced by the AP in the last month.
…. Not only did the AP story suffer from errors of the “Spanish as a second language” variety, but also it badly stumbled on factual mistakes that could have been fact-checked on Google in seconds.
Bill Quigley: Ten Examples Of Welfare For Corporations And The Ultra-Rich
There are thousands of tax breaks and subsidies for the rich and corporations provided by federal, state and local governments, but these 10 will give a taste. 1. State and local subsidies to corporations: An excellent New York Times study by Louise Story calculated that state and local government provide at least $80 billion in subsidies to corporations. Over 48 big corporations received over $100 million each. GM was the biggest, at a total of $1.7 billion extracted from 16 different states, but Shell, Ford and Chrysler all received over $1 billion each. Amazon, Microsoft, Prudential, Boeing and casino companies in Colorado and New Jersey received well over $200 million each.
2. Direct federal subsidies to corporations: The Cato Institute estimates that federal subsidies to corporations cost taxpayers almost $100 billion every year. 3. Federal tax breaks for corporations: The tax code gives corporations special tax breaks that have reduced what is supposed to be a 35-percent tax rate to an actual tax rate of 13 percent, saving these corporations an additional $200 billion annually, according to the US Government Accountability Office.
Michelle Obama is in many ways the embodiment of the contemporary, urban, well-heeled middle-aged American woman. On Saturday night, Mrs. Obama will celebrate her 50th birthday with dancing and sweets throughout the state floor of the White House, drawing the nation’s attention away from her husband, at least for an evening. Guests will sip fine American wines, consume delicate macarons and be entertained — the expectation is by Beyoncé.
Marc Howard, whose daughter Zoe once played on the soccer team with Sasha, recalled how his daughter drained the tiny water bottle he had brought for her one hot Washington day on the field. Mrs. Obama lightheartedly chided him. “She said, ‘What kind of water bottle is that?’ and gave Zoe hers,” Mr. Howard said. “Those are things far away from the cameras.”
While Mrs. Obama has been careful not to define herself or her role strictly through race, she has paid steadfast attention to her role as a model and mentor to minority children from poor backgrounds like her own, and has built much of her policy agenda around them. “She is more self-determinative than prior first ladies because she very rarely allows herself to be drawn into distracting conversations,” said Carl Anthony, a historian of first ladies. In addition, he said, “She speaks to a demographic pretty much ignored by the White House by all first ladies except for Eleanor Roosevelt.” He cited trips Mrs. Obama has made to the Anacostia neighborhood of Washington and White House invitations she has extended to local working-class African-Americans.
President Obama and First Lady Michelle Obama talk with St. Louis Cardinals first baseman Lance Berkman in the Red Room after welcoming the team to the White House to honor their 2011 World Series victory, Jan. 17, 2012 (Photo by Pete Souza)
First Lady Michelle Obama greets David Hall, one of eight Citizen Co-Chairs for the Inauguration, in the Diplomatic Reception Room of the White House, Jan. 17, 2013 (Photo by Lawrence Jackson)
ThinkProgress: After canceling a speech on income inequality last week at the University of Pennsylvania after learning it would be open to the public, House Majority Leader Eric Cantor spoke today at the University of Michigan. It was clear why he had avoided the public previously, as 99 Percent Movement protesters stood silently during the speech while other audience members responded vocally to Cantor’s statements.
TPM: ….. In a new strategy memo by press secretary Ben LaBolt, Obama’s re-election team ripped into the GOP field as too conservative to win over the middle on issues ranging from taxes to immigration:
From economics to immigration, the Republican field have embraced policies that the American people oppose. The campaign to win the Republican nomination has become a campaign to win the hearts and minds of the Tea Party. They would return to policies that have been tried before and done nothing to improve economic security for the middle class, rewarding special interests who can afford to pay for lobbyists instead of looking out for working families.
While the President is fighting to create jobs and put money in the pockets of middle class Americans, the Republican candidates have proposed extending tax breaks for large corporations and tax cuts for the wealthiest while allowing special interests to write their own rules.
The Republican candidates universally want to repeal the protections that the President put in place to prevent another financial crisis and instead allow banks to write their own rules….
…. America’s future will be defined by the success of our middle class, but the Republican candidates are positioning themselves as champions for large corporations and special interests whose plans would leave working families in the lurch.
TPM: Well, that was quick. Several hours after Mitt Romney told an Iowa heckler that “corporations are people, my friend” the DNC is up with a video lampooning the quote. Featuring the smooth sounds of Barbara Streisand’s “People,” no less.
And this is the guy the professional left are conspiring to elect?
Thank you Fred.
Steve Benen: …. Occasionally, Romney interacts with real people who aren’t part of the meticulous choreography. And that’s when the ostensible GOP frontrunner gets into trouble. Here’s Romney campaigning in Iowa this morning, for example, following a shouting match with hecklers concerned about taxes and entitlements.
“Corporations are people, my friend,” Romney said in response to suggestions that big businesses should pay more. He added, “Of course they are. Everything corporations earn ultimately goes to people.”
At that moment, a whole lot of political and media professionals, all at the same time, whispered to themselves, “Well, that’s going to show up in a campaign ad sometime soon.”
Part of the problem with this is the phrasing, since “corporations are people” doesn’t exactly scream “man of the people.”….
…. And that leads to the larger point: Romney’s been running for president non-stop for nearly five years, but he’s still not good at the whole “personal interaction” thing. Just over the past few months, we’ve seen several examples — the jokes about being “unemployed” in Florida; the fake butt-pinch in New Hampshire, the $100 bill in Colorado — that reinforce the belief talking and relating to people just doesn’t come naturally to Romney.
If Democrats are eager to characterize Romney as a weird guy who isn’t comfortable in his own skin, the former governor actually seems eager to help reinforce the theme…..