Trash Talk - F1 Circus Begins and Elite Eight
It is here; can you feel the anticipation? That's right, the start of the 2009 Formula One season with the Australian GP. Also on tap is the NCAA Elite Eight.
Lobbyists Wailing about Delicious Hell for Lobbyists
Lobbyists are, predictably, very sad that they have to lobby for stimulus funds in writing rather than in person.
Deferred Prosecution Agreements and AIG
Remember the flap in the last few years about deferred prosecution agreements? The flap started when it was reported that John Ashcroft's firm had gotten a $52 million deal from his former colleague, NJ US Attorney Chris Christie, to monitor an out-of-court settlement with medical device company Zimmer Holdings. Bush's DOJ loved the deferred prosecution agreements because it provided a way to "crack down" on corporate crime without dismantling the company.
What If Big Media Became a Systemic Risk?
There were two interesting questions Tim Geithner didn't answer today. Whether he knows of another systemically large non-bank that might fail, and what would happen if GE Capital posed a systemic risk.
Darrell Issa Fears Michelle's Triceps, But Not Dick's Guns
Darrell Issa wants to regulate Michelle Obama. I guess he's afraid of her triceps.
Yet More House Finance Hearing Geithner Liveblog, Part Two
First liveblog thread here.
Castle: I want to address what you didn't address. Collins, stability management council. Unanimous agreement we need to do something.
Geithner Likes It Naked
Joe Donnelly asked Tim Geithner whether we ought to eliminate naked default swaps, arguing that it's too hard to distinguish hedges from gambling. Donnelly pointed out that we're taking money out of truck drivers' pockets and waitress' pockets to pay off Wall Street's gambling debts. Ultimately, though, Geithner said we don't need to--and that it would be very hard to--do that.
Did Chuck Todd Ask about Sacrifice because He's Been Asked to Sacrifice?
Turns out that Chuck Todd has probably been asked to hold off on any pay raises he has gotten recently. Maybe that's why he's so insistent that Main Street "start" making sacrifices.
Yet More House Finance Hearing Geithner Liveblog
If I understand the rules Barney Frank laid down on Tuesday, the members who waited patiently but never got a chance to ask questions on Tuesday (people like Alan Grayson) get to go first.
You can follow along at CSPAN3 or the committee stream.
Frank: When Geithner and Bernanke here on Tuesday, these members were here when they had to leave:
French Execs Shoot Their Gun; Our AIG Employees Accuse US of Extortion
The words extortion and blackmail are
"Reasonable grounds to conclude"
It took a month longer for BushCo to invoke state secrets in the al-Haramain suit than they did in the ACLU suit. In the interim period, they appear to have redefined the program, so as to admit they didn't have proof that al-Haramain was "associated with al Qaeda."
Declining Justice: DOJ Lets Statute Run On Bush Criminality
On March 10, 2009 Emptywheel noted that the five year statute of limitation on the initial criminal wiretapping acts by the Bush/Cheney Administration in the al-Haramain case were expiring. Now the final statute of limitations on the criminal wiretaps of al-Haramain has expired as of 12 pm last night.
Again on the al-Haramain Stuff
The WaPo has a front page article blaring about Obama's horrible record on state secrets.
I agree with the article that Obama's record on state secrets has been worse than disappointing. But I'm really tired of reporting that misses key facts about the case. Here's the theme of the WaPo article.
The first signs [that Obama is "forsaking" campaign rhetoric about openness] have come just weeks into the new administration, in a
Brad Miller Asks More Questions about Goldman Sachs
Brad Miller (D-NC) asks the complement to the question I asked last night: Where's the guy who doesn't know shit about Wall Street to assess these bailouts?
Brad Miller asks, doesn't Edward Liddy's past board membership on Goldman Sachs create the appearance of conflict of interest--not to mention someone without the sufficient distance to approach this problem fairly?
Geithner doesn't seem too troubled about any potential conflict of interest.
Brad Sherman Predicts This Will Work Out Badly
Brad Sherman predicts this is not going to work out well for the taxpayer. First, he predicts we're going to fail to do anything to reel in Wall Street:
What I fear here is that we are doing a kabuki theater in three acts:
The first act, Washington tells the American people, "we understand your anger at Wall Street."
In the second act, we nitpick to death any proposal that actually adversely affects
Joe Baca: When Was It Broken?
Congressman Baca asked Ben Bernanke a very simple question about AIG: "When was it broken?" That question has a very simple answer: "1999." But Bernanke didn't want to admit that the deregulation passed in 1999 brought about the mess at AIG and elsewhere.
Michael Capuano: Why Are We Using the FDIC in the Bailout? And Why Do We Trust Ratings Agencies?
Michael Capuano (D-MA) did the best job grilling Geithner and Bernanke about Geithner's new bailout plan today. He challenged Geither's claim that this leverages private investment at a 6 to 1 ratio, arguing that with the FDIC funding, it's actually 13 to 1.
He then asks how much toxic assets are out there, noting that there are more than a trillion dollars of toxic assets out there.
Manzulllo: Why Do Americans Who Lost Their Retirement Have to Pay AIG?
Congressman Donald Manzullo (R-IL) read this line in Tim Geithner's opening statement to the House Financial Services Committee today.
AIG directly guarantees over $30 billion of 401(k) and pension plan investments and is a leading provider of retirement services for teachers and educational institutions.
And this line in Ben Bernanke's opening statement.
Workers whose 401(k) plans had purchased $40 billion of insurance from AIG against the risk that their stable value funds would
Geithner: There Is No Plan B
Gresham Barrett (R-SC) asked Tim Geithner "the $64 trillion question"--basically, what is Plan B.
Geithner's response? Don't worry. It'll work. That wasn't acceptable when President Bush had no Plan B in Iraq, and it's not acceptable here.
Maxine Waters: Is Goldman Sachs Going to Manage Our Toxic Waste?
Maxine Waters got into one key area of distrust on the bailouts: the ubiquity of Goldman Sachs in bailout plans.
Tim Geithner sure didn't seem all that interested in Waters' questions on the bailout.
