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Greg Craig in Trouble … But for What?

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I’ve disliked Greg Craig since the time–before Obama was elected–he insulted our intelligence by suggesting Obama had flip-flopped on FISA because FISA (and not the odious Protect America Act) was expiring. It was bad enough that Obama caved on an important issue without his advisor insulting our intelligence as to why.

But I’m worried that Greg Craig’s job as White House Counsel may be in jeopardy for the wrong reasons. 

The WSJ reports that is in jeopardy.

Mr. Craig has come under criticism from inside the administration and in Congress for a perceived failure to manage the political issues that have originated from Mr. Obama’s decision to close Guantanamo, according to officials in the administration and in Congress. This criticism has drawn focus away from president’s priorities, such as health care and energy.

Since when is it the job of the White House Counsel to manage "the political issues" on key national security issues? Isn’t that the job of the political people–men like Rahm Emanuel (whom Greg Craig saved a heap of headache in the way he handled the Blagojevich fallout, though in that, too, he insulted our intelligence) and David Axelrod?

And from there, the description gets even weirder. Apparently, Greg Craig is in trouble because Dick Cheney made a stink after Obama released the torture memos.

Mr. Craig and Attorney General Eric Holder won the fight to release the memorandums, with minimal redactions, but the White House had to move quickly to limit political damage. Former Vice President Dick Cheney sharpened criticism of Mr. Obama during a televised speech that followed Mr. Obama’s own address intended to explain his national-security vision. 

And because polls no longer support closing Gitmo.

Mr. Obama signed executive orders during his first week in office to close the Guantanamo prison, to review the cases of the more than 200 detainees there and to draw up possible changes to detention and interrogation policies.

At the time Mr. Obama enjoyed public support for his Guantanamo plans, polls showed. Six months later that public support has dissipated, polls show.

In other words, WSJ seems to suggest that Craig is in trouble because he supported the right decisions on policies, but the political people in the White House mismanaged implementing those decisions. Taking the correct stand on moral issues only works, after all, if you sustain that stand and refuse to be cowed by Dick Cheney.

Read more →

Holder v. Rahm: The Torture Fight

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rahmemanuel1113.thumbnail.jpgThe headline news in Dennis Klaidman’s long piece on Eric Holder is that Holder may appoint a Special Prosecutor to investigate torture.

Four knowledgeable sources tell NEWSWEEK that he is now leaning toward appointing a prosecutor to investigate the Bush administration’s brutal interrogation practices, something the president has been reluctant to do. While no final decision has been made, an announcement could come in a matter of weeks, say these sources, who decline to be identified discussing a sensitive law-enforcement matter.

But the whole piece is worth reading for two other reasons: the drama it paints between Holder and Rahm (and the White House political agenda more generally), and the details it gives about the torture policy thus far.

Rahm v. Holder

First, Rahm.  Even to the extent to which the profile of Holder here reads like a puff piece, the entire piece is driven with two, related, narrative conflicts: Holder’s regret over the Marc Rich pardon.

And though Holder has bluntly acknowledged that he "blew it," the Rich decision haunts him. Given his professional roots, he says, "the notion that you would take actions based on political considerations runs counter to everything in my DNA."

And the tension of working for a Rahm-driven White House.

Any White House tests an attorney general’s strength. But one run by Rahm Emanuel requires a particular brand of fortitude. A legendary enforcer of presidential will, Emanuel relentlessly tries to anticipate political threats that could harm his boss. He hates surprises. That makes the Justice Department, with its independent mandate, an inherently nervous-making place for Emanuel. During the first Clinton administration, he was famous for blitzing Justice officials with phone calls, obsessively trying to gather intelligence, plant policy ideas, and generally keep tabs on the department.

One of his main interlocutors back then was Holder.

[snip]

"Rahm’s style is often misunderstood," says Holder. "He brings a rigor and a discipline that is a net plus to this administration." For his part, Emanuel calls Holder a "strong, independent attorney general." But Emanuel’s agitated presence hangs over the building—"the wrath of Rahm," one Justice lawyer calls it—and he is clearly on the minds of Holder and his aides as they weigh whether to launch a probe into the Bush administration’s interrogation policies.

In spite of the reported warmth between the two, Rahm is depicted as opposing a torture investigation. And there’s a remarkable anonymous quote in the article that contextually appears to be Rahm, Read more →

Is Obama Fixing to Own Some Banks?

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The other day, I suggested that Obama’s principles of government ownership sounded like they were designed for more than just GM.

There’s evidence to support that suggestion in this reasonably good David Sanger article on the GM bankruptcy.

In interviews in recent days, Mr. Obama’s economic team said it anticipated [political pressues regarding business decisions related to companies the government owns], and had moved to cut them off early.

“It started right around the time of the bank stress tests,” said Rahm Emanuel, Mr. Obama’s chief of staff, in an interview on Monday. During one of the president’s daily economic briefings, Mr. Emanuel added, “he said that taking over companies like this is a big deal, and that no president has ever faced anything like this before. And he said he wanted to see some rules of the road about how the government should act” when it suddenly becomes the biggest shareholder in the market.

Mr. Obama clearly wanted protection: a set of principles he could hand to angry members of Congress, campaign contributors or executives to explain why he would not call Fritz Henderson, G.M.’s chief executive, to discuss whether an engine should be made in Saginaw or Shanghai.

The result was an interagency task force informally called “The Government as Shareholder,” headed by Diana Farrell, the deputy director of the National Economic Council and formerly the head of the McKinsey Global Institute, the research arm of McKinsey & Company.

It was Ms. Farrell’s report, delivered to the Oval Office fewer than 10 days ago, that laid out the principles that Mr. Obama described on Monday.

The White House insists the principles will apply equally to the government’s investment in the American International Group, the fallen insurer, or in Citigroup and other banks that the government has rescued. [my emphasis]

Sanger doesn’t seem to get the implication of Rahm’s comment. Rahm tells us these principles–principles the government will use with companies it owns–came up not during auto task force discussions, but during the bank stress tests.  That means the conversation about socialism how big a deal it is for the government to own companies came up in the context of owning banks, not owning car companies.

Sure, we already own an insurance company and Freddie and Fannie. Sure, maybe the reference to Citi is a very pointed reference. 

But it sure seems like these principles suggest we’re going to be owning a bank in the near future, to go along with GM and AIG.  Read more →

Is Rahm Congressman A?

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The Blago indictment describes a previously unreported failed extortion attempt of Congressman A. Congressman A seems to be Rahm Emanuel. If that’s true, then it means Rahm will be dragged into the trial (and discovery) of this case. But it also shows that he resisted Blago’s advances even before it became clear Blago was under suspicion for corruption.

Extorting Congressman A

The indictment describes this extortion attempt in 2006.

22. It was further part of the scheme that in or about 2006, after United States Congressman A inquired about the status of a $2 million grant for the benefit of a publicly-supported school, defendant ROD BLAGOJEVICH instructed defendant HARRIS not to release the grant until further direction from ROD BLAGOJEVICH, even though ROD BLAGOJEVICH previously had agreed to support the grant and funding for the grant had been included in the state’s budget.

23. It was further part of the scheme that, in response to inquiries by a high-ranking state official as to whether the grant money could be released, defendant ROD BLAGOJEVICH informed the official that ROD BLAGOJEVICH wanted it communicated to United States Congressman A that United States Congressman A’s brother needed to have a fundraiser for ROD BLAGOJEVICH.

24. It was further part of the scheme that defendant ROD BLAGOJEVICH told Lobbyist A that ROD BLAGOJEVICH was giving a $2 million grant to a school in United States Congressman A’s district and instructed Lobbyist A to approach United States Congressman A for a fundraiser.

25. It was further part of the scheme that after defendant ROD BLAGOJEVICH learned from defendant HARRIS that the school had started to incur expenses that were to be paid with the grant funds, ROD BLAGOJEVICH initially resisted the release of the grant money, and then ultimately agreed to the release of certain of the grant funds to cover incurred expenses, but only on a delayed basis, even though no fundraiser had been held.

Note, it’s clear from the last paragraph that Congressman A did not hold a fundraiser for Blago, and that at least some funds were provided to the school in any case. So Congressman A definitely blew off Blago’s attempt at extortion.

Jesse Jackson Jr is Senate Candidate A

Congressman A does not appear to be Jesse Jackson Jr, another of the male Congressmen who got pitched during the Senate sale this year.  We know JJJ had worked with Fitzgerald to expose two earlier attempted corruption schemes from Blago–a $25,000 scheme involving JJJ"s wife, and an attempt to open a third airport in Peotone, IL. But if JJJ had been a target of this third extortion attempt, why wouldn’t it have come out earlier when he revealed the earlier contacts?

Also, JJJ is mentioned elsewhere as Senate Candidate A.

It was further part of the scheme that on or about December 4, 2008, defendant ROD BLAGOJEVICH instructed defendant ROBERT BLAGOJEVICH to contact a representative of Senate Candidate A, and advise the representative that if Senate Candidate A was going to be chosen to fill the Senate seat, some of the promised fundraising had to occur before the appointment.

It’s unlikely they would refer to  JJJ as both Senate Candidate A and Congressman A.

Congressman A matches details on Rahm in the complaint

In addition to the attempted extortion in 2006, Congressman A is also described in context of the attempt to sell the Senate seat last year, specifically in regards to a demand to set up a 401(c)4 in exchange for the appointment of a Senate candidate.

On or about November 13, 2008, at Chicago, in the Northern District of Illinois, Eastern Division, and elsewhere,

ROD BLAGOJEVICH,

defendant herein, for the purpose of executing the above-described scheme, did knowingly cause to be transmitted by means of wire and radio communication in interstate commerce signals and sounds, namely a phone call between ROD BLAGOJEVICH in Chicago, Illinois, and Advisor B in Michigan (Session 624), in which they discussed presenting to United States Congressman A a proposal by ROD BLAGOJEVICH that a not-for-profit organization be set up and that the connection between setting up this organization and the awarding of the U.S. Senate seat would be "unsaid”;

[snip]

Read more →

Who Is Paying a Private Investigator to Snoop on Rahm?

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I’m not so much interested in the news that Rahm is apparently breaking code by living in Rosa DeLauro’s basement. (h/t scribe)

Rahm Emanuel, Barack Obama’s right-hand man, lives in a basement apartment on Capitol Hill rented to him by Congresswoman Rosa DeLauro. Just one problem: He’s not allowed to live there.

That’s what private investigator Joseph Culligan discovered after asking questions of D.C. officials. A zoning administrator responded to Culligan’s inquiry and told him that DeLauro’s house at 816 E. Capitol St. NE was listed as a single-family dwelling, and as such, could not be rented out.

After all, plenty of people in DC–starting with Norm Coleman–have more legally questionable housing arrangements. 

I’m much more interested in who is paying private investigator Joseph Culligan to snoop on Rahm (and DeLauro). 

Rahm’s Not So Secret Plans

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Say, have you heard that Rahm wants to return to Congress in two years so he can eventually run for Speaker? Sure you have, because we’ve covered it here. But it’s sure interesting the way folks in Chicago treat it as a widely known fact, yet one you can’t speak about.

White House Chief of Staff Rahm Emanuel is interested in potentially returning to Chicago someday to reclaim the congressional seat he held until a month ago, a candidate running to replace him said Sunday.

When 11 Democrats at the first 5th Congressional District forum were asked whether they have had direct or indirect conversations with Emanuel about being a "place holder" for the seat, only state Rep. John Fritchey (D-Chicago) said he had.

"I spoke with Rahm maybe a week or two after he had accepted the job of chief of staff," Fritchey said. "At that time, he had commented to me that he may be interested in running one day again for the seat. I told him that should I be fortunate enough to run, and should I be fortunate enough to win the seat, I would look forward to campaigning against him."

The state lawmaker then appeared to sense he might have been a bit too open about the conversation he had with Emanuel, who represented the district from 2003 through 2009, before leaving to work for President Barack Obama.

"If I’m going to put words in anybody’s mouth, it’s not going to be Rahm’s," he said. "So, let me phrase it as exactly as I can for a conversation that took place three months ago. But that was a statement that he may be interested in running for the seat at some point down the road." [my emphasis]

Oops. I guess you’re not allowed to speak the truth about Rahm in Chicago, huh?

Add in the little difficulty that "a week or two after he had accepted" the COS job would put it in the November 13 to 20 timeframe–or precisely the time frame when Blago seemed to be preparing to send John Wyma out to talk to Rahm about just these plans and when Michael Sneed was reporting on it. But that was all before it was revealed that whatever conversations Rahm had with Blago were helpfully taped by the FBI, after which point it became important to cover up any of those conversations. 

No wonder Fritchey thought better of admitting Read more →

Rahm's Contacts

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I’m still trying to sort through the conflicting stories on contacts Rahm Emanuel had with Rod Blagojevich and his crowd. One of two things is going on:

1. Rahm has been less than forthcoming in describing his contacts with Blagojevich and his minions.

AND/OR

2. There has been a sustained effort to misrepresent Rahm’s contacts with the governor.

Note the AND/OR there: I believe both are true, to a point. Which is why I’m still trying to wade through these details.

Did Rahm call Blago in December?

The most recent conflicting data point is this one, included in a Sun-Times story reporting on Reid’s contact with Blago:

Before [Reid’s and Menendez’s conversations with Blago on December 3], Obama’s chief of staff Rahm Emanuel called Blagojevich to tell him to expect to hear from Senate leadership because they were pushing against Jackson and others, according to statements the governor made to others.

This would seem to conflict with Rahm’s representation to Obama’s team, which asserted that he had only spoken directly to Blago one or two times–both in early November.

Mr. Emanuel had one or two telephone calls with Governor Blagojevich. Those conversations occurred between November 6 and November 8, 2008.

There are a couple of ways to resolve this contradiction, neither one of them very satisfying. First, it is possible (though highly improbable) that Rahm told Blago on November 8 that Senate leadership would call him (though note that–at that point–Schumer had not yet announced his resignation as DSCC Chair), and they simply didn’t get around to calling him until December. This is unlikely for two reasons: Obama’s team hadn’t even given Blago their "list" yet, so it seems unlikely that Reid and Menendez or Schumer were already lobbying heavily. And then there’s the unrealistic delay of almost a month, during a period when it was never clear whether Blago was about to appoint someone in the near future or not.

The other way to resolve the contradiction is via the dodge I pointed out earlier. The Obama report does not claim to be a comprehensive on all contacts between Obama’s team and Blago’s team; Read more →

Blagojevich, Reid, and Rahm: Who Is Distorting Claims about Jesse Jackson Jr.?

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The Sun-Times has updated its story on Reid’s calls to Rod Blagojevich with this statement from Harry Reid:

Gov. Blagojevich appears to be trying to distract attention from his daunting legal problems and damaged credibility by distorting information about private phone calls between himself and other public officials. It is regrettable and reprehensible.

Gov. Blagojevich’s efforts to try to tarnish others while the cloud of suspicion continues to grow over him are shameful, as are his efforts to further betray the public trust and sow seeds of division. As each day passes it becomes increasingly clear that Gov. Blagojevich is not fit to lead, and he should resign.

I will not allow his corruption charges or his antics to distract me from leading the Senate, to drive a wedge in our party or to obscure the facts. [my emphasis]

(Reid just accused Blago of lying about it on MTP, as well.)

I’m fascinated not only by Reid’s decision to respond to what he apparently believes is a Blago leak, but by his accusation that Blago is lying. That’s because there are now three different versions about whether or not Jesse Jackson Jr. was acceptable to Obama and Reid.

Recall that, several weeks ago, someone leaked to the Trib details of Rahm’s discussions with Blago about "acceptable" candidates for the Senate seat. That list rather notably did not include JJJ.

Emanuel delivered a list of candidates who would be "acceptable" to Obama, the source said. On the list were Obama adviser Valerie Jarrett, Illinois Veterans Affairs director Tammy Duckworth, state Comptroller Dan Hynes and U.S. Rep. Jan Schakowsky of Chicago, the source said. All are Democrats.

Sometime after the election, Emanuel called Harris back to add the name of Democratic Atty. Gen. Lisa Madigan to the approved list, the source said.

In fact, except for Jarrett, that list did not include any African-American candidates.

But that’s not who Rahm says was on the list.

Between the time that Mr. Emanuel decided to accept the position of Chief of Staff in the White House and December 8, 2008, Mr. Emanuel had about four telephone conversations with John Harris, Chief of Staff to the Governor, on the subject of the Senate seat. In these conversations, Mr. Emanuel and Mr. Harris discussed the merits of potential candidates and the strategic benefit that each candidate would bring to the Senate seat. Read more →

The Squabble over Subpoenas in Springfield

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When Blagojevich’s lawyer threatened to subpoena Rahm Emanuel and Valerie Jarrett last week, it made a lot of sense. By causing the Obama team ongoing distraction, it would have allowed Blago to exact a price from Illinois Democrats aiming to oust him. And it would allow Blago’s lawyer, Edward Genson, to see some of the evidence not shown in Obama’s selective report last week (for example, the content of other conversations between Valerie Jarrett and Tom Balanoff, one of which may be referenced in the complaint yet unmentioned in the Obama report).

Sadly for Blago, though, he’s going to be unable to force Rahm and Jarrett to testify. Fitz sent the legislative committee a letter requesting that Rahm, Jarrett, Jesse Jackson Jr., and Nils Larsen (the Financial Advisor advising Sam Zell on the Wrigley Field stuff) not be subpoenaed.

You have inquired whether prospective testimony by Valerie Jarrett, Congressman Jesse Jackson, Jr., Congressman Rahm Emanuel, and Nils Larsen before the Special Investigative Committee would interfere with the ongoing criminal investigation into the activities of Governor Rod Blagojevich and others. Our understanding is that counsel for Governor Blagojevich has asked the Committee to issue subpoenas requiring the testimony of those individuals on Monday, December 29, 2008.

Consistent with our letter of December 22, 2008, we believe that testimony before your Committee by any witness, including the four named above, concerning the subject matter of the ongoing criminal investigation, could significantly compromise that investigation. The impact of such testimony on the criminal investigation would be the same regardless of whether a witness is called by the Committee or by Governor Blagojevich. Accordingly, we ask that the Committee refrain from issuing subpoenas for testimony by those four individuals (or others) which would overlap with the subject matter of the pending criminal investigation.

The committee has made it clear it will comply with Fitz’s request. 

Now, I think it would be a mistake to read too much into Fitz’s request. After all, he’s unlikely to want to pick and choose (for example, if he said "you can subpoena JJJ but not Larsen"), as that selection, by itself, would signal which witnesses he wanted to withhold.  And Fitz is notoriously reluctant to show his cards before his time. 

Also note Fitz’s wording. This was misrepresented in some of the coverage of this, suggesting that Fitz had asked the committee not to subpoena those "mentioned" in the complaint; Read more →

Shorter Blagojevich:

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"If I have to face impeachment, then the self-imagined future Speaker of the House ought to be forced to testify, too."

In a dramatic development in the ongoing impeachment proceedings, lawyers for Gov. Rod Blagojevich want two key aides to President-elect Barack Obama and U.S. Rep. Jesse Jackson Jr. to testify before the House impeachment committee.

Sources tell CBS 2 that a letter sent by Blagojevich’s lawyers  to committee chairman, State Rep. Barbara Currie, asks that the committee subpoena Obama’s chief of staff Rahm Emanuel, senior adviser Valerie Jarrett and Jackson.

This is a smart move by Blago. Obama has already signaled he wants to protect Jarrett and Rahm (more on this in upcoming posts). So why not make Obama as uncomfortable as possible? (I intend to start counting the number of unintended consequences from Obama’s crappy treatment of yesterday’s report; count this as number one.)

Furthermore, this will expose a good deal of Fitz’s case. Not that Obama or Jarrett or JJJ himself (as opposed to his associates) are key players in Fitz’s case. But this gives Blago an opportunity to play to the press’ shiny object to distract attention from the wholesale sale of government that is the core of Fitz’s case.