Friday, November 20, 2009
BOFA Rumored To Hire New Ceo By Sunday...Top Industry Candidates Didn't Want Job
Banking boomtown loses one of its biggest players. Charlotte, N.C. is the country's second largest banking center, but the recent failure of Wachovia has the entire city bracing for fallout from thousands of executive-level layoffs. NBC's Kerry Sanders reports.
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The Best Job No One Wants
A new CEO for Bank of America could be chosen as early as Sunday, reports Charlie Gasparino. Inside a selection process beset by rivalries, government pressure—and most of all a lack of interest from top candidates.
The board of directors of Bank of America is trying to pick a successor to Ken Lewis, and it really, really wants to finish the job on Sunday night, a senior BofA official tells me. The board is trying to get the job done, this official also tells me, because it’s sick of all the controversy surrounding the selection. Members have been divided over the internal candidates. Others are angered that no one on the outside wants the job of running a bank that is being investigated by the New York attorney general, among others, partially owned by the federal government and thus open to harassment by Rep. Ed Towns, Rep. Barney Frank, various bureaucrats at the Fed, and the giant SEIU, which wants to organize tellers and has a direct line into the Obama White House.
They’re also kind of annoyed at the press, me in particular, for calling the selection process—one that has lasted weeks longer than it should have and featured a prominent board member going on vacation—dysfunctional.
So they want to move and move fast, at least as fast is defined down there in Charlotte, the headquarters city where these decisions get made. Even so, this executive reminds me that the board is still divided over internal candidates and hasn’t settled on someone from the outside to take the job. He also reminds me that the selection process is still beset by rivalries among various board members and pressure from the feds to find someone with better qualifications than senior executives already at the firm. In other words, he concedes, the process is pretty dysfunctional, so it might take a week or, as far he knows, longer than that to announce the new CEO.
Now you know why no one wants this job.
And it’s a shame, because Bank of America is more important than the joke it has become after Lewis purchased Merrill Lynch at the height of the financial crisis for $50 billion, only to later find $15 billion in losses on Merrill’s balance sheet, forcing him to seek a federal bailout to keep the big bank afloat. It’s one of those “systemically important” places that regulators like to say are way too big to just implode and go away, because if it does, billions of customers’ deposits must be covered by FDIC insurance, not to mention all the trading and brokerage accounts at Merrill Lynch that must be unwound, patched up, and placed in safer hands, if there are any left.
Back in the 1950s, there was a saying, “as GM goes, so goes the nation.” General Motors, thankfully, doesn’t carry as much economic weight these days—it was bailed out by the government along with the banks, and look at the trouble we’re in—but Bank of America does, which is why finding someone to run the place is so important.
And that person will have not just to integrate the troubled Merrill Lynch acquisition, he also might have to guide the bank through another banking crisis. Analysts I speak to aren’t all that placated that the banks are healing even as the economy starts to produce growth. The economic growth we have is still being accompanied by rising unemployment, now at 10.2 percent but edging close to 10.5 percent.
What does that mean for Bank of America? Consider the following: The financial firms may have written down much of the residential mortgage debt—the collateralized bond obligations and mortgage-backed securities—that were at the heart of the financial crisis last year.
But consumer-related loans—credit-card receivables, car loans, etc.—are just starting to default, and commercial real estate isn’t doing so hot, either.
So far those defaults haven’t overwhelmed the money BofA has made by borrowing at low rates (the Fed has taken its base rate down close to zero), buying bonds, and carrying those bonds on its books at a higher interest rate. That might change, analysts tell me, if unemployment rises to around 11 percent. That’s when the profitable bond trades are overwhelmed by the consumer debt losses. BofA’s modest profits could well disappear, forcing the bank to raise more capital and who knows what else.
So here’s to hoping this weekend or next weekend or whenever it sees fit, the BofA board finds the right person for the job. Some analysts I know aren’t so optimistic. When banking analyst Mike Mayo heard that the board might be forced to turn to an inexperienced internal candidate because smart people like Larry Fink of BlackRock and Bob Diamond of Barclays Capital didn’t want the job, Mayo had a solution:
Chuck Prince, the former CEO of Citigroup, the other big bank in worse shape than BofA.
The reason: At least he has experience running a failing bank.
Bank of America’s Next Chief May Be Based in New York
Bank of America Corp. broadened its search for a chief executive officer to include candidates who want to live in New York, acknowledging the bank’s biggest units are no longer based in its home of Charlotte, North Carolina, people familiar with the matter said.
The board, led by Chairman Walter Massey, is also concerned there may not be a deep enough pool of qualified candidates willing to move to Charlotte, 330 miles south of Washington, the people said, speaking anonymously because the search is private. CEO Kenneth Lewis, who is stepping down at year’s end, has said Charlotte will remain headquarters as long as he’s in charge.
“It does reflect well on the board that they’re not going to let the headquarters location limit their selection in terms of CEOs,” said Thomas Brown, CEO of New York-based hedge fund Second Curve Capital. “There aren’t too many people around the world who think that Charlotte is a major financial center.”
Five board members with ties to Charlotte have stepped down during the past two years, and none of their replacements lives in the city, the state’s largest. New directors live in Alabama, Delaware, New York, Ohio, Texas and Virginia. Lewis, 62, is the only North Carolina resident.
Curl, Moynihan
The leading internal CEO candidates are Chief Risk Officer Gregory Curl, 61, who lives in Charlotte, and consumer-banking chief Brian Moynihan, who almost left the bank last year after he declined to take a new post in Wilmington, Delaware, according to a person familiar with the situation. Moynihan, 50, lives in Boston, where he worked for FleetBoston Financial Corp. until Lewis bought the lender in 2004.
“We aren’t going to comment on speculation on the process,” bank spokesman Jerry Dubrowski said.
Former Bank of America CEO Hugh McColl Jr. told a Charlotte group on Oct. 22 that it’s unclear whether the next CEO will be based in the city, according to four people who heard his comments at the meeting, which was sponsored by Queens University of Charlotte. McColl engineered the 1998 acquisition of San Francisco-based BankAmerica Corp., stipulating Charlotte’s role as headquarters. He emphasized that he no longer influences the board’s decision-making, according to the people who heard his comments.
McColl didn’t return telephone calls seeking comment.
The Finger family in Houston, owners of more than 1 million Bank of America shares, said in a regulatory filing today that Moynihan and Curl aren’t suitable candidates and provided a list of 18 alternative choices. Their suggestions include former Bank of America executives Alvaro de Molina, now the CEO of GMAC Inc., and James Hance, chairman of Sprint Nextel Co. The Fingers sponsored a campaign earlier this year to oust Lewis.
Calabasas, Wilmington
Bank of America’s investment banking and wealth-management businesses, which are run from New York, made up half of revenue through Sept. 30, up from 34 percent in the same period last year, before the acquisition of Merrill Lynch & Co.
“With Merrill Lynch being such a big part of the ball game, the CEO probably ought to be in New York,” said Arnold Danielson, chairman of Danielson & Associates, an investment- banking firm in Bethesda, Maryland.
The home loans and insurance unit, which account for 14 percent of revenue, is based in the former Calabasas, California headquarters of Countrywide Financial Corp., which the bank acquired in 2008. The credit-card services unit makes up 23 percent of revenue and is based in Wilmington.
The consumer-banking business under Moynihan in Boston made up 11 percent of revenue. All told, that means about 98 percent of the bank’s revenue comes from units headed by executives based outside Charlotte.
Charlotte Jobs
Massey leads a search committee of six directors, three of whom joined the board upon the FleetBoston acquisition. They include retired FleetBoston CEO Charles “Chad” Gifford, who lives in Boston.
“Some of the Fleet members have no allegiance to Charlotte,” Brown said.
The North Carolina city was home to two of the four biggest U.S. banks until San Francisco-based Wells Fargo & Co. bought Charlotte-based Wachovia Corp. in an October 2008 sale brokered by government regulators.
Bank of America employs 15,000 people in its hometown, said Bob Morgan, president of the Charlotte Chamber, a group that promotes local business interests. That’s about 5 percent of the bank’s global workforce of 281,863. Wells Fargo has about 19,000 employees in the city after cutting about 2,000 jobs there during the past year, Morgan said.
New Yorkers contacted about the job include Charles Scharf, retail banking head at New York-based JPMorgan Chase & Co., a person familiar with the matter said. Robert Kelly, CEO of Bank of New York Mellon Corp. and a former Wachovia chief financial officer, “has said he has no interest in the job,” spokesman Kevin Heine said today.
A JPMorgan spokesman, Thomas Kelly, declined to comment on behalf of Scharf.
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Sources: The Daily Beast, BOFA, MSNBC, McClatchy Newspapers, Charlotte Observer, Wikipedia, Google Maps
Palin Fans Go Beserk At No-Show Indy Book Signing Event..."My Books Are Going Back Tomorrow"
Palin Booed By Indy Book Tour Crowd
Unhappy fans of Sarah Palin went rogue on the Alaska Republican during her book tour stop in Noblesville, Indiana on Thursday.
The local Borders outlet had handed out 1,000 wristbands to book purchasers; the wristbands were supposed to procure fans Palin's signature on their hardback copies of "Going Rogue." But several dozen people who had been promised signatures were turned away empty-handed after waiting hours in poor weather, a local news outlet, the Indy Channel, reported.
"We gave up our entire workday, stayed in the cold, my kids were crying," one man was quoted saying. "They went home with my wife. She was out here in the freezing cold all day. I feel like I don't want to support Sarah."
Another woman told Indy Channel, "We bought two books from Borders to have our receipt and our wristband to get it signed tonight. My books are going back to Borders tomorrow."
The angry crowd turned on Palin as she returned to her "Going Rogue" tour bus. Video below shows people booing and shouting at the bus, and shouting "Sign our books Sarah!" as the engine revved up and Palin departed.
Palin Greets Hundreds, But Not Everyone Leaves Happy
Former vice presidential candidate Sarah Palin was met by a cheering crowd of more than 1,000 people when she arrived in Noblesville Thursday night, but not everyone left happy.
Palin stepped off her tour bus, holding her youngest son, Trig, just after 5:30 p.m. at the Borders store at Hamilton Town Center, 6News' Rick Hightower reported.
Palin waved to members of the crowd, who were shouting her name, before taking to a stage to welcome her Hoosier supporters.
"We had a great time a year ago in Indiana but I think I'm having even more fun now, though," Palin said. "You guys, thank you very much from the bottom of my heart for being out here and for just being great residents of this wonderful state, and, even more importantly, great Americans who care about our country and care about those people who want to fight for what is right."
The store handed out 1,000 wristbands for Thursday night's book signing, which wrapped up just before 9 p.m. Those who got to meet a woman they consider an idol walked away happy.
"I said, 'Sarah, thanks for hearing our voices,'" said Nancy Rourke of Greenwood.
"She's just selling what she is: good policy, good values for our country," said Margie Kimes.
Before getting back on her bus just after 9 p.m., Palin thanked the crowd one more time.
"Noblesville, this was so great. You guys are hardcore patriots. Thank you so much for being here," she said.
But not everyone went away happy. Several dozen people who had wristbands were turned away.
"They didn't have this organized well enough," said Sue Hendricks. "It was just not done right."
"I'm very disappointed. I think it was very rude. She could have at least apologized, and she didn't even do that," said Teresa Hedrick.
Many of the unhappy people stood in the rain all day, bought the book from Borders and clutched their wristbands for their opportunity to meet Palin.
"We bought two books from Borders to have our receipt and our wristband to get it signed tonight," said one woman. "My books are going back to Borders tomorrow."
"We gave up our entire workday, stayed in the cold. My kids were crying," said one man. "They went home with my wife. She was out here in the freezing cold all day. I feel like I don't want to support Sarah."
For those who did get to meet Palin, no personal signatures or pictures were allowed. Those who didn't get their books signed went home only with a piece of paper with Palin's signature.
Palin's book, "Going Rogue," went on sale Tuesday, but it has topped best-seller lists for weeks.
Palin also signed books in Fort Wayne earlier in the day.
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Sources: Huffington Post, Indy Channel, The Indianapolis Star, The Daily Beast, Newser, Daily Kos, Youtube, Google Maps
Landrieu, Lincoln Mull Saturday's Health Care Reform Test Vote...Pressure, Pressure
Senate Democrats are under extreme pressure to pass Health Care Reform Bill.
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Landrieu leans yes in Sat. cliffhanger
Sen. Mary Landrieu (D-La.) said Friday night that she’s “leaning towards” voting to start debate on the health care bill – which would leave Democrats just a single vote shy of clearing a critical test for the reform package on Saturday.
Asked outside the Capitol if she’s made up her mind on starting the debate, Landrieu said she planned to announce her intentions Saturday but told POLITICO, “I’m leaning towards it.”
That would mean Senate Majority Leader Harry Reid’s hopes for a successful vote hinge on one senator: Sen. Blanche Lincoln (D-Ark.), who remained mum about her intentions as the clock ticked down to the critical vote.
Lincoln told POLITICO Friday afternoon that she has no timetable to make her decision ahead of the vote, scheduled for 8 p.m. "I was told I have time to make my decision," Lincoln said.
And Sen. Ben Nelson (D-Neb.) announced he would vote yes on going ahead with debate, even though he is calling for significant amendments to the bill on the floor.
Democrats from the White House to Capitol Hill projected confidence that Reid would have the 60 votes needed to start debate on health reform, despite the reservations expressed by senators on various details in the bill.
But with barely 24 hours left before the Saturday vote, no issue had emerged to immediately derail the $848 billion package, and Reid’s No. 2, Sen. Dick Durbin of Illinois, told reporters, “We will proceed with this bill."
The White House issued a statement of support for Reid’s bill, calling it “a critical milestone in the effort to reform our health care system.”
Other, less noticeable factors broke Reid’s way. Sen. Ron Wyden (D-Ore.), who has long pushed to expand consumers' health care choices, scored a big win today when Reid and Finance Committee Chairman Max Baucus agreed to open the insurance exchanges to more consumers.
The change would allow roughly a million Americans who have employer-provided insurance to choose between keeping their employer coverage and buying coverage in the newly created health insurance exchanges. The U.S. Chamber of Commerce criticized Wyden’s plan, saying it would undermine the current employer-based health insurance system, but Wyden maintains that it doesn't impact businesses.
Landrieu, a co-sponsor on Wyden's Healthy Americans Act, said she was "very happy" to hear Wyden had struck the deal.
In recent days, Landrieu has sounded more and more open to voting for Reid’s measure. She told reporters earlier in the week that she was leaning against the vote, but shifted to neutral on Thursday and earlier Friday. By Friday night, with a stack of health care briefing papers under her arm, Landrieu said was leaning in favor of supporting the procedural motion.
She acknowledged that she had fought for changes to the bill to help people in her state. Reid included an extra $100 million in Medicaid funding for states hit by Hurricane Katrina, which includes Louisiana.
“I’m using as much leverage as I have for the issues that I think are important not just to Louisiana but to broad constituencies throughout this country... In some ways, you can’t fix anything unless you keep the debate moving forward but in the other ways, you’ve got to use the leverage when you’ve got it to get some things that are important,” Landrieu said.
It was Lincoln who remained the biggest question mark about the vote. Durbin told reporters that Lincoln had revealed her vote to Reid but Lincoln later said that wasn’t true, and Durbin had to pull back his remarks..
On the eve of the vote, Reid’s plan came under fire from Republicans and the Catholic Church, as one official from the U.S. Conference Catholic of Catholic Bishops told the Associated Press it “the worst bill we’ve seen so far on the life issues.”
It was the influence of the Catholic bishops that made abortion an last-minute issue that almost derailed the House vote on health reform two week ago. The issue seemed to have less resonance in the Senate, and two senators who have in the past voted to restrict abortion, Sen. Kent Conrad of North Dakota and Sen. Bob Casey of Pennsylvania – didn’t seem inclined this week to inject the abortion issue into the Saturday debate.
Republicans tried to step up pressure on Nelson and the other moderates to keep them from voting yes. Republican Sen. John McCain emailed his supporters this morning urging them to call Nelson's office to urge him to vote no tomorrow on moving health reform forward.
But the 11:30 a.m. email probably came too late to make much impact. Shortly after noon, Nelson announced his yes vote.
Senate Republicans also stepped up their attacks on the bill, with Minority Leader Mitch McConnell (R-Ky.) saying it relied on budget gimmicks to keep its price-tag under $1 trillion – like pushing off the start date of major reform until 2014.
Sen. John Cornyn (R-Texas) also tried to knock down the argument of Nelson and others that a vote Saturday is merely a vote to proceed to debate. “No Senator who votes for cloture on the motion to proceed tomorrow I think can with a straight face can contend they have somehow not embraced the bad policy contained in this bill,” he said.
If Reid still had his eye on Sen. Susan Collins (R-Maine), she dashed any hopes of giving Democrats a surprise "yes."
"How does this bill help small businesses? On balance, it doesn't," Collins said in a floor speech. "America would be better served by a bipartisan deal that brings together ideas on both sides of the aisle."
Health Care's Public Option Would Cover Little of Population
A proposed government-run health insurance program, among the most divisive issues in the health care debate, would cover less than 1.5 percent of the population, new estimates show.
The latest version of the "public option," included in the 10-year, $848 billion health care bill headed toward an initial Senate vote Saturday, would cover up to four million people, according to the Congressional Budget Office report released late Wednesday night.
The issue remains among those that have prevented Senate Majority Leader Harry Reid from securing the 60 votes he needs to pass the bill.
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Sources: Politico, ABC News, Google Maps
John McCain Offers No Support For Obama's Climate Change Bill..."Cap & Tax"
John McCain slams "horrendous" Climate bill
Sens. Lindsey Graham and Joe Lieberman have been working overtime to craft a climate bill that can attract significant GOP support. But they aren’t exactly scoring points with their mutual best friend in the Senate, John McCain.
“Their start has been horrendous,” McCain said Thursday. “Obviously, they’re going nowhere.”
McCain has emerged as a vocal opponent of the climate bill — a major reversal for the self-proclaimed maverick who once made defying his party on global warming a signature issue of his career.
Now the Arizona Republican is more likely to repeat GOP talking points on cap and trade than to help usher the bill through the thorny politics of the Senate.
McCain refers to the bill as “cap and tax,” calls the climate legislation that passed the House in June “a 1,400-page monstrosity” and dismisses a cap-and-trade proposal included in the White House budget as “a government slush fund.”
Former aides are mystified by what they see as a retreat on the issue, given McCain’s long history of leadership on climate legislation. McCain and Lieberman authored their first climate bill in 2003 and reintroduced the legislation in 2005 and 2007. “The only reason we are debating climate legislation in the Senate right now is because of the leadership he showed three Congresses ago,” said Tim Profeta, a former staffer for the Connecticut independent on climate issues who is now a professor at Duke University.
“I wouldn’t be here on this issue without him,” said Graham, a South Carolina Republican who spent much of last fall campaigning for McCain. “He’s the guy that introduced me to the climate problem.”
McCain first began moving away from his support for cap and trade during his 2008 presidential campaign, when he insisted that reporters not describe the program as a “mandatory” cap on greenhouse gas emissions. He also infuriated the environmental community by picking Alaska Gov. Sarah Palin as his vice presidential running mate and standing by as she questioned global warming science.
Lobbyists who’ve met with McCain say he feels that the White House has failed to pour enough political capital into the issue for him to feel comfortable breaking with his party.
“This really hasn’t been done in a bipartisan fashion,” said McCain spokesman Brooke Buchanan.
Current and former aides suggest that staff changes since the campaign could also have something to do with the change in tone. Several of McCain’s longtime staffers, including top aide Mark Salter, left the office after the campaign. And Floyd DesChamps, a Commerce Committee aide who worked closely on the McCain-Lieberman climate bill, left Capitol Hill after McCain gave up his longtime seat on the committee last January.
The staff that remains, say former aides, lacks the institutional history on the issue and the ability to steer McCain toward productive solutions.
McCain aides dismissed the idea that those changes have had an effect on his position, saying that the senator — not the staff — drives policy positions.
Arizona politics could be another factor. Republicans hope to use the cap-and-trade bill to attack Democrats on economic issues by saying it will raise electricity costs for businesses and spike electric bills. Those attacks could resonate in Arizona, which has one of the highest unemployment rates in the country.
“His view is probably [that], in the middle of a recession, when we have 10 percent unemployment, [it] is not the time to be putting a huge new energy tax on our economy,” said Sen. Lamar Alexander (R-Tenn.), who opposes an economy-wide cap-and-trade bill.
McCain says he is discussing the climate issue with Lieberman but does not see Sen. John Kerry (D-Mass.), who introduced a climate bill earlier this fall, or the Obama administration as willing to negotiate with him.
“What they’ve done so far is not only a nonstarter, but it’s a contradiction to everything I’ve tried to do on cap and trade,” he said. “I see no support for what they are trying to do.”
McCain has laid out a series of proposals that could help win his vote — but most likely at the cost of Democratic votes.
An ardent believer in free trade, McCain would like to strip a provision out of the legislation that would levy a border tax on imports from China, India and other developing countries if they do not sign on to an international climate treaty.
“That’s blatant protectionism; that’s insulting to everything I believe in,” he said.
But dropping the border tax would lose votes from Rust Belt Democrats, who fear the legislation will hurt the manufacturing industry.
And he’d like to open Nevada’s Yucca Mountain as a repository for nuclear waste — a highly controversial issue that would inflame the climate debate. Senate Majority Leader Harry Reid (D-Nev.) has spent decades lobbying against the project. Earlier this year, the Obama administration stripped funding for the facility in its 2010 budget.
“They’re shutting down Yucca Mountain because of the power and influence of Sen. Reid,” McCain said. “They can do that, but that doesn’t mean that somehow they get me to agree to it.”
Sources: Politico, DC Street Blogs, Reuters
Roland Burris Is Cleared By Senate Ethics Committee...Democrats Need His Vote
Burris scolded for "Misleading" info. The Ethics Committee admonished Sen. Roland Burris for being "less than candid" with investigators regarding his appointment. NBC's Brian Williams reports.
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Senate Democrats are under extreme pressure to pass Health Care Reform Bill.
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Senate Ethics panel: No punishment for Sen. Roland Burris
The Senate ethics committee on Friday admonished Sen. Roland Burris, D-Ill., for making "inconsistent, misleading or incomplete" statements about the circumstances surrounding his appointment to the seat once held by Barack Obama. The committee recommended no action beyond the letter.
Burris was appointed by disgraced former Illinois Gov. Rod Blagojevich, who was impeached and driven from office after he was accused of trying to sell the Senate seat.
The committee cited at least one example, a phone conversation with the governor's brother, where Burris linked his willingness to raise funds for the governor with appointment to the Senate.
While finding no violation of law, the committee's "Public Letter of Qualified Admonition" told Burris that "Senators must meet a much higher standard of conduct" than he exhibited with his constantly changing statements.
The ethics committee has often been criticized for failing to go beyond letters of admonition after finding a senator's conduct discredited the institution.
Burris commented, "I am pleased that after numerous investigations, this matter has finally come to a close. I thank the members of the Senate Ethics Committee for their fair and thorough review of this matter, and now look forward to continuing the important work ahead on behalf of the people of Illinois."
Weakened and facing multiple primary challengers next spring, Burris has decided not to fight for a full Senate term next year. Fellow Democrats shun him. Meanwhile, the former governor is scheduled to go to trial in June.
The ethics committee was especially critical of Burris' comments during the Nov. 13, 2008, phone call from the governor's brother.
While Robert Blagojevich explicitly told Burris he was calling to raise campaign funds for the governor, the committee's letter to Burris said "you appeared to agree to write a check and even potentially raise money"; and "repeatedly brought up your desire to seek the Senate seat.
"You also implied that the people you might raise money from would be unhappy if you did not receive the appointment," the committee wrote. The committee found the conversation "inappropriate in its content and implications."
The letter also was critical of Burris' shifting explanations about his contacts with the governor or his representatives.
"You gave multiple and at times contradictory explanations for failing to disclose all your contacts with the governor's associates, which individually and collectively gave the appearance that you were being less than candid," the ethics panel wrote.
The committee said that in deciding to go no further than the letter, it considered that a county prosecutor found Burris' sworn statements did not violate the law.
"We were also aware that these issues surrounding your appointment to and seating in the Senate have been subject to intense public criticism," the committee said.
The second-ranking Senate Democrat, Dick Durbin of Illinois, said, "When we met with Roland Burris in January, we made it clear that in order for him to be seated in the U.S. Senate he needed to appear before the Illinois General Assembly to testify openly, honestly and completely about the nature of his relationship with the former governor, his associates and the circumstances surrounding this appointment.
"Since then, the accuracy and completeness of his testimony and affidavits have been called into question. The U.S. Senate Ethics Committee has completed its review into this matter and found that Sen. Burris actions have brought discredit on him and the Senate. The letter of qualified admonition from the Ethics Committee speaks for itself."
EDITORIAL: Law on Burris' side, but that doesn't mean he's right
The laws looks to be on Senator Roland Burris’ side — but that doesn’t mean he is not a liar.
A U.S. Senate ethics panel on Friday concluded that Burris provided “incorrect, inconsistent, misleading or incomplete information” when he testified and made comments about his contacts with former Gov. Rod Blagojevich or members of his team before the freshly-arrested governor tapped Burris to be senator last December.
But the Senate only admonished Burris on Friday because it said the evidence didn’t support any “actionable violations of the law.”
Technically speaking, they’re probably right.
But there’s the law and then there’s what is right.
Burris lied, then he lied about lying.
By any standard, that falls far short of what we expect from a U.S. Senator.
Burris, you’ll recall, told an Illinois House impeachment committee in January that he didn’t talk to anyone except Blagojevich’s former chief of staff about the Senate appointment. Burris later acknowledged he actually talked to four Blagojevich insiders, including a key conversation with the governor’s brother where Burris lobbied for the appointment while offering to help with fundraising for Blagojevich.
Burris accepted a radioactive Senate appointment few other honorable men and women would touch. And, against great odds, he managed to hold on to that appointment only because the law — and not public opinion — was on his side. Now, he gets to keep that job because he knew his way around the law.
But that doesn’t mean Burris is not a liar — or that he deserves to be a U.S. Senator.
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Sources: MSNBC, Chicago Sun-Times, Miami Herald, Google Maps
Kate Moss' "Skinny Remarks" Create Backlash...Being Anorexic Isn't Sexy
Outrage over Kate Moss' "Skinny remarks". British supermodel Kate Moss' remarks about being skinny are sparking outrage around the world. Msnbc's Tamron Hall reports on the controversy.
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Kate Moss’ use of Pro-Anorexia slogan draws ire
Campaigners against eating disorders criticized Kate Moss Thursday after the supermodel cited as her motto a phrase used on pro-anorexia Web sites.
Asked her motto in an interview with fashion Web site WWD, Moss replied that one of them was "nothing tastes as good as skinny feels."
The same slogan is posted on Web sites encouraging girls not to eat.
Mary George of British eating-disorder charity Beat said Moss's words were "very unfortunate."
She said, "comments like this make it even more difficult" for young people struggling with an eating disorder.
Supermodel Kate Moss was quoted repeating a slogan that is posted on Web sites encouraging girls not to eat. A model campaigning against too-skinny models called Moss’s words “shocking and irresponsible.”
Model Katie Green, who is campaigning for an end to ultra-thin "size zero" models, told The Sun newspaper that the comments were "shocking and irresponsible."
Moss, 35, is famous for her waif-like look, which helped spur a trend for super-thin models in the 1990s.
Moss's modeling agency, Storm, said her words had been misinterpreted.
"This was part of a longer answer Kate gave during a wider-ranging interview, which has unfortunately been taken out of context and completely misrepresented," the agency said in a statement.
"For the record, Kate does not support this as a lifestyle choice," the agency said.
British clothing sizes are normally two sizes above clothing sold in the U.S., so a "size zero" in the United States would be a size 4 in Britain.
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Sources: MSNBC, Washington Post, Wikipedia, Google Maps
Harry Jones Is Throwing Employees Under The Bus To Save His Job....Pathetic!
Harry Jones replaces Auditor over DSS Fraud Report
Mecklenburg County Manager Harry Jones today said in a memo the county human resources department "has been instructed to initiate recruitment for a new Internal Audit Department director."
The memo does indicate what happened to Director Cornita Spears, who announced Tuesday that an audit released this summer failed to account for roughly $33,000 that had been returned to the county.
Spears said the money helped the county account for more than $160,000 that had been spent by the Giving Tree charity program run by the county Department of Social Services. Here is the full story.
Former county finance director Harry Weatherly will serve as interim consulting director for the next 90 days.
The reorganization was included in a memo Jones sends weekly to county commissioners.
Here is the memo:
Changes in Internal Audit Management
As I mentioned at the Board meeting earlier this week, the error associated with the Giving Tree audit is unacceptable for this organization. It has damaged the credibility of the Internal Audit Department and Mecklenburg County as an organization. I have determined that the credibility of the Internal Audit Department cannot be restored with the current management of this department.
Therefore, I have taken the following steps regarding the leadership and management of the Internal Audit Department. Former County Finance Director Harry Weatherly has agreed to serve as Interim Consulting Director of the Internal Audit Department. We will expand our existing services agreement with Mr. Weatherly to serve in this capacity over the next 90 days. In this role, Mr. Weatherly will provide executive oversight of the Internal Audit Department in a consulting capacity. He will report directly to the county manager regarding all matters pertaining to the County’s Internal Audit Department.
Mr. Weatherly will be supported in this interim role by current Internal Audit Department staff member Chris Waddell. Mr. Waddell will serve as Interim Operations Manager for Internal Audit and will be responsible for the day-to-day operations of the Department.
In addition, the Human Resources Department has been instructed to initiate recruitment for a new Internal Audit Department director.
These changes are effective immediately.
--Harry L. Jones, Sr., County Manager
$33,000 repaid to Charlotte-Mecklenburg DSS but overlooked
Mecklenburg County's investigation into alleged misspending at a Christmas charity for children took a surprising twist Tuesday: Officials said a county employee returned more than $33,000 months ago, but auditors didn't account for it.
The finding raised new questions about the months-long probe, including why it took so long for administrators to learn about the money and why so much had been advanced to a county employee. Auditors said the worker had spent some of it on personal items.
County Manager Harry Jones said he was "damned embarrassed" by the latest information.
Commissioners, stunned by the revelations, said scrutiny of the Department of Social Services has eroded public confidence. They ordered a study of how to improve ethics throughout county government.
"I can't help but be baffled," Commissioner Dan Murrey said. "What we have done is confuse the public more."
The county's internal auditor told commissioners it was not until the past week that officials realized the returned money helped explain some of the $162,000 spent on the Giving Tree program that had not been fully accounted for.
But the auditor stood by her earlier report that said officials can't be certain where the bulk of the money went.
"I'm disappointed that we did not catch this earlier," Jones told county commissioners.
The county frequently advanced money to employees to help buy gifts for needy children, with receipts expected to document how the money was spent.
It wasn't immediately clear how much the employee who returned money had been given in the past, but it included at least two $10,000 checks made out in December and January, according to an internal memo released to commissioners Tuesday.
The money returned by the employee in February and March helped cover those checks, the memo stated, as well as other unspent money or funds meant to account for "personal purchases that were inadvertently included amongst receipts."
The employee also returned earrings and a DVD player whose costs drew concerns from management, and reimbursed the cost for the items.
The county did not identify who returned the money, only saying it was a former employee who had worked with the Giving Tree program for about 10 years.
A police investigation into the Giving Tree program is ongoing.
Murrey said an accounting error has unnecessarily harmed public perceptions about county government.
Commissioner Karen Bentley and other commissioners said they had received numerous complaints from citizens about DSS in recent months. Bentley reassured residents that she would look into concerns and seek answers to questions about accountability.
Commissioners Bill James said Tuesday's news only raises more questions.
James suggested that the employee only returned the money to escape punishment. He alluded to widespread problems with missing and altered receipts and said the county should investigate whether wrongdoing occurred in previous years.
Worker raised questions
The Giving Tree probe started earlier this year after a DSS employee raised questions about "large dollar" checks that had been written to a worker who managed the program, the county has said.
Two workers connected to the Giving Tree effort were suspended with pay. One was reinstated this summer, while the other had been put on medical leave.
Cindy Brady, a former DSS supervisor who collected donations for the Giving Tree program retired in August. But county officials have never said whether she was one of the two suspended employees.
Reached Tuesday, Brady said she had been advised by an attorney not to comment about the DSS issue.
In June, county auditors said they'd collected about $138,978 in receipts related to the Giving Tree.
But the county said they couldn't provide complete assurance that the money was spent properly because more than 99 percent of the receipts had problems, including information that had been altered or whited out.
That left about $23,310 that officials said they could not account for.
On Tuesday, Internal Audit Director Cornita Spears told commissioners that she received "clarifications" about how much money the employee had returned to the county.
Spears said the county had previously recorded some money the unnamed employee had returned to reimburse money used for personal items.
However, Spears said she learned last week that more money had been returned, but determined it had not been properly recorded in the earlier Giving Tree review.
Spears said the new information didn't change the overall findings of the June report.
Jones said that while he believed the county had made an "unacceptable error," he said county management had called for the various DSS audits, recommended changes and had not hidden information about the probes.
READER COMMENTS:
Flatout wrote on 11/20/2009 01:42:04 PM:
mytwocents:
If this is indeed a "common" practice and in line with written and oral county policy, it's really BAD BOOKKEEPING and a BAD POLICY that lends itself to misuse.
Nothing should be on a paid for by county receipt except those things paid for by THE COUNTY.
ANY personal items should be paid for separately....now I know, that may take a few more minutes of county employees time that I assume they are being PAID for. And furthermore, they should not be doing PERSONAL shopping on county time, right?
The whole system is so screwed up and corrupt. I feel the most sorry for the honest, ethical employees who are swimming upstream in the system, trying to do the right thing. (Much like the employees at CMPD, who are constantly being
asked to do things that conflict with their values and integrity!)
mytwocents wrote on 11/19/2009 09:44:59 PM:
About "whited out or altered" receipts. Possible reason-Employee is given $50 to buy gifts for kids. Spends $40 on kids. Also picks up some person items while at the store. Crosses out or whites out those personal items and submits receipt along with $10 change for the $40 of $50 legitimately spent on kids. Nothing illegal, dishonest, unethical. Common practice, totally in line with written and oral County policy and procedure. HOWEVER....depending on what "spin" is given, can be made to look very questionable. Ensuing 9 months of hoopla provides a great sleight of hand diversion...."No, wait...look over here." Is anyone else exhausted yet?
Elohssa wrote on 11/19/2009 07:45:56 PM:
Isn't it irrelevant that 33,000 was returned? If I rob a store and then 1 year later return part of the money is that o.k.? If it is, let me know, it is close to Christmas and I would like to visit DSS to get my share of money and presents. Then again, it is actually everyone's fault in Meck. Co. You elected these people who rip you off, perhaps you're only getting what you deserve.
luvugirl wrote on 11/19/2009 02:47:23 PM:
Replying to mytwocents (11/18/2009 10:42:14 PM):
"" At any rate, there are tens of thousands of dollars worth of clothing, toys, electronics, and gift cards that have been purchased for foster kids, locked in a room at DSS per Ms. Wilson's orders, which she has withheld from the public in addition to the $33,000 that was returned as unspent (not...":
Thank you for your honest post and for exposing some of the TRUTH about the Christmas Items being locked behind closed doors for Christmas 2009 but Wilson chose not to disclose this information. Those items were bought with part of the funds disbursed in January & February!
luvugirl wrote on 11/19/2009 02:00:45 PM:
Replying to mytwocents (11/18/2009 10:42:14 PM):
"" At any rate, there are tens of thousands of dollars worth of clothing, toys, electronics, and gift cards that have been purchased for foster kids, locked in a room at DSS per Ms. Wilson's orders, which she has withheld from the public in addition to the $33,000 that was returned as unspent (not...":
One of the best posts thus far, THANK YOU and you are 100% correct, these items and $$$ have been there all along, but Wilson chose to hide that bit of information, wonder why?
Flatout wrote on 11/19/2009 12:46:12 PM:
Replying to cedarposts (11/18/2009 07:09:51 PM):
"Mr. Jones now suffers from a total lack of public confidence in his ability to command, and he should be relieved at once.":
Absolutely!
And a criminal investigation should be undertaken!
Because if these aren't criminal allegations, then just what WOULD qualify as criminal behavior???
Total lack of any kind of oversight, in particular NO ETHICAL STANDARDS UPHELD AT ALL.
The buck stops with Harry Jones.....do the decent thing and resign.
Because we are "damned embarrassed" by your whole scam.
clutthewindow wrote on 11/19/2009 08:46:46 AM:
I wonder if they sat on this information until after Anthony Foxx was elected?
mytwocents wrote on 11/18/2009 10:42:14 PM:
" At any rate, there are tens of thousands of dollars worth of clothing, toys, electronics, and gift cards that have been purchased for foster kids, locked in a room at DSS per Ms. Wilson's orders, which she has withheld from the public in addition to the $33,000 that was returned as unspent (not misappropriated) in March." Wow, I had to get up and walk around after that one, I was so stunned. You know what's sad? I have no reason to disbelieve this...at all. This whole thing about missing funds came very conveniently at a time when Ms. Wilson was under a lot of public scrutiny. "The best defense is an offense" comes to mind. Was this all a diversionary tactic? If there is truth to what you say, it goes waaaay beyond that though. The overwhelming majority of DSS employees are fiercely commited to serving their clients, and honest to the core. They don't need Harry's frequent reminders about "ethics"; they live it already. Old saying is "it's the chicken that squawks that laid the egg."
STLCardsFan wrote on 11/18/2009 10:10:44 PM:
I am not surprised at all! As a County employee for 16 years, the accountability of Finance always worried me, for what reason I don;t know... But any child that comes in the system they wont but new clothes for them, some come w/ nothing...but they can spend money on other things like Jones bonus and holiday parties but not on a foster child a coat for winter! And allow employees to take advantage of community donations for disadvantaged children at Christmas is hideous! SHAME SHAME SHAME Mecklenburg County Gov't!
diggndeeper said...
Okay Harry, next replace Mary Wilson, then Mr Foxx's wife, then Mr. Monroe's daughter, then your daughter and then resign and I might believe you are serious about fixing the reputation of the county. But we all know what you will do. The auditor was offered up as a sacrifice and somehow will be supported by our tax dollars for some time or till they get a new job.
So watch out for who Harry hires and check their background, affliations with Harry's family members, etc.
November 20, 2009 5:29 PM
Anonymous said...
Harry, how can you not take responsiblity for this mess? This action shows a continuing disregard for what is right and wrong with DSS.
We both know it, don't we.
November 20, 2009 5:35 PM
Anonymous said...
Harry, Harry, Harry isn't this pretty much shooting the messenger?
Come on you sack of thoroughbred fertilizer, man up and move on.
Word Verification: Bullitio
Must be Italian for BS?
November 20, 2009 5:44 PM
Karl said...
Harry Jones is simply trying to divert attention on this matter by doing something that should have been done months ago when it was first discovered.
First the whole Lomax debacle and now this...do our locally elected government officials still think they're immune from being held accountable by their constituents?
It's time for a clearing of all Mecklenburg and Charlotte 'leaders'. 2012 can't come soon enough!
P.S. diggndeeper is spot on!
November 20, 2009 5:54 PM
Anonymous said...
That's our county government under Harry. Jake of DSS? Drama, investigation, departure; Personnel Director be4 Kenneth Peek, Drama, investigation, departure; Wayne Weston formerly of Parks and Recreation? Drama, investigation, departure; Now internal auditor? Drama, investigation, departure.
What's the common points?
Drama, investigation, departure, next new hire for the same
dysfunctional culture, and leadership, and Harry.
November 20, 2009 6:15 PM
Anonymous said...
Jennifer Roberts, where are you?
November 20, 2009 6:38 PM
Anonymous said...
This is like the captain of the Titanic blaming and replacing the lookouts for hitting the iceberg. Harry Jones is to blame for this sordid mess. He has been running the county, especially the DSS, as his own little company business, hiring his relatives and friends, with total disregard for the county commission and taxpayers. What else is he hiding???
November 20, 2009 6:39 PM
Anonymous said...
I have to agree with the sentiments here. Make the messenger the scap goat so you don't have to take any responsibility
November 20, 2009 6:44 PM
Harry Jones: No Thought of Resigning
Charlotte-Mecklenburg County Manager Harry Jones has faced intense criticism from some residents on a variety of issues this year, including reported accounting problems in the Department of Social Services and a $38,400 performance bonus given to him earlier this month. Some have even called for his job.
Jones addressed the issues in an interview Thursday on "Charlotte's Morning News with Al Gardner & Stacey Simms" on WBT-AM.
Here are some snippets from the interview:
Q. Have you thought about resigning?
Jones: "No, I have not given any thought to that Al. This has been a good year. You know along the way you are going to make some mistakes. I did make a mistake in forwarding an email. Harry Lomax and I have subsequently talked and I'm taking his position that it was blown way out of proportion. He and I have had lunch together with each other. No, I have not given any thought to it. But I will say, Al, it's been a tough year. It's been a really tough year. But I think it's also been my best year and I told the board of county commissioners that and I'm going to continue to stay where I am unless they decide they don't want me any longer."
Q. As Al was mentioning, though, other county employees didn't get bonuses at all. And it seems to me that with the email as you said you’ve apologized, you've had lunch with the gentleman, but (it was) big blow to public trust there, and with the DSS situation being what it is, why not say, well, I'll accept the bonus if such and so bears out, an ethics investigation, something like that? Because I think a lot of people would question whether this was the best year for county government.
Jones: "I’m going to say this: I earned that bonus. I think the other issues "My board of Charlotte-Mecklenburg County Commissioners" factored all of those things in when they considered my compensation. And the position that I will take is that, yes, the email does raise some questions about people's confidence in government. But Al and Stacey, I will say to you that there was no malicious intent, as I have indicated publicly, on my forwarding that particular email. And in that there was no malicious intent, for those people who want to call for my scalp on that one particular action, (they) don’t know Harry Jones and don't know what Harry Jones has done through his career to try to open up government, to encourage more participation. If you want to judge me on this one action, then I would say you're judging me contrary to the real Harry Jones."
Concerned Man's e-mail about Charlotte-Mecklenburg DSS Fraud sent to his employer
As news spread about possible missing money from the Department of Social Services Christmas charity, Harry Lomax and other donors contacted Mecklenburg County leaders to complain.
"I feel duped," Lomax wrote in an e-mail to county commissioners and top administrators.
But Lomax likely did not anticipate County Manager Harry Jones' response.
Jones forwarded the e-mail to Lomax's employer, Bank of America, and wrote, "Do you know Harry Lomax."
A Bank of America vice president replied to Jones about one hour later, writing that she was "embarrassed" by Lomax's e-mail.
"I am tracking it down. I don't know him - I have alerted charles. Will be back to you," she wrote.
Some commissioners and ethics experts now say the actions by Jones and the bank official were improper because they could stifle free speech and blur the lines between employment and citizenship.
It's unclear how Jones knew Lomax worked at Bank of America. Lomax sent his message from a personal account and did not mention the bank by name.
"It is not appropriate," said Diane Swanson, a professor of business ethics at Kansas State University. "If this happened all the time, what kind of world would we have?"
The Observer obtained the e-mails from the county through an open records request. They provide a glimpse into how top Mecklenburg administrators reacted to reports of misspending and accounting lapses at the Department of Social Services.
Worried donors wrote to commissioners and county executives after auditors disclosed that they could not account for tens of thousands of dollars from a charity designed to buy Christmas presents for needy children.
Some county commissioners said they do not understand why Jones forwarded the e-mail from Lomax to his employer when he was speaking as a citizen and not on behalf of the company. They said they would question Jones about it.
Public officials publish their phone numbers and e-mail addresses to allow constituents to voice concerns and ask questions. They also set aside time during public meetings to listen to comments from constituents.
"Citizens are able to vent frustrations without thinking that (county) management will get their employer to engage in some retribution," Commissioner Bill James said. "This makes the county look bad. It makes Harry look vindictive. It makes Bank of America look like the county's hatchet man."
Jones did not respond to interview requests from the Observer. A county spokesman referred a reporter to a statement the county released, but it does not directly address questions about Lomax's e-mail.
Nicole Nastacie, a spokeswoman for Bank of America, said "on their personal time, employees are free to express personal opinions" to government officials about any issue that is not related to the company.
Betty Turner, the bank's government liaison who responded to Jones, suspected that Lomax's e-mail involved issues related to the bank and appropriately looked into the situation, Nastacie said. When she determined Lomax was speaking as a private citizen, there were no further discussions, Nastacie said.
Lomax declined to comment.
The e-mail
On July 7, Lomax sent his e-mail to commissioners, Jones, DSS Director Mary Wilson and County Finance Director Dena Diorio. He wrote that he had planned to speak during a commissioners meeting the same day at the urging of Commissioner Neil Cooksey.
Lomax wrote that he left before speaking and decided to e-mail his comments.
The e-mail criticizes county management for failing to prevent accounting failures and accuses some commissioners of a "flippant, hands-off response" to the issue. "There seems to be a need for a wholesale cleanup of many county agencies, and I think that starts from the top down," Lomax wrote.
A week after receiving the e-mail, Jones forwarded it to Turner.
Commissioners respond
Commissioner Karen Bentley said Jones should not have sent the e-mail to Bank of America.
"It should have no bearing on his job," Bentley said. "That's his right."
Commissioner Dumont Clarke called the move "unusual."
Clarke and some other commissioners said they would need more information to judge whether Jones acted appropriately.
"It's not a good practice for the manager to do," Clarke said.
Commissioner Chairman Jennifer Roberts said she would try to contact Lomax to speak with him. "I don't read anything into this," Roberts said. "Maybe Harry was trying to make sure Bank of America didn't feel duped."
Four business and government professors reviewed the e-mails for the Observer. Three said Jones did not have a valid reason to forward Lomax's e-mail since he did not mention his employer by name or present himself as a representative of the company.
"Given these circumstances, one would expect a public official to respond directly to Mr. Lomax and not contact his employer," said Denis Arnold, a professor of business ethics at UNC Charlotte.
Winthrop professor Marilyn Smith disagreed.
Considering public outcry over alleged misspending in DSS, Smith said it understandable that Jones would contact Bank of America. The bank also reacted appropriately, she said.
"To a certain extent, we represent our employers 24/7," said Smith, a professor of management. "We like to think it's my own personal opinion. Companies are judged by how their employees behave, fair or not."
In response to "$33,000 repaid to DSS but overlooked" (Nov. 18):
Observer forum: Letters to the editor
Posted: Thursday, Nov. 19, 2009
Glad Jones is 'embarrassed,' but it's now time for heads to roll
I'm glad County Manager Harry Jones was "damned embarrassed" with the latest scandal within the DSS, but isn't it time to quit being embarrassed and start making changes?
Any private company that couldn't account for tens of thousands of dollars would see heads roll and people fired. Unfortunately, government-run black holes of tax dollars aren't held up to the same scrutiny.
Trigg Cherry
Charlotte
READER COMMENTS:
Anonymous said...
The most condesending employee in Mecklenburg County. Why should he resign, he is riding the gravy train. Now, if he had morals, it would be another story.
November 19, 2009 5:41 PM
diggndeeper said...
Well said!
November 19, 2009 5:59 PM
Anonymous said...
Quit picking on this strong intellegent black man.
November 19, 2009 6:04 PM
Anonymous said...
'strong intelligent' ??? don't forget articulate - "..had lunch together with each other..". Yes Mr. Jones this has been a good year, FOR YOU!! The rest of us have been losing jobs, not getting raises or bonuses, you know, fun stuff like that.
November 19, 2009 7:02 PM
Anonymous said...
What does race have to do with this, you racist?
November 19, 2009 7:03 PM
Anonymous said...
Such arrogance. Does he think we are ignorant? The county commissioners could fire him with a simple single vote.
The integrity of the entire county is at stake.
Time for the guillitine...
November 19, 2009 7:11 PM
Anonymous said...
Keep voting for Democrats Charlotte. And this kind of crap will continue until all the people who have made anything of their lives will abandon it to this d-bag's "clients".
November 19, 2009 7:12 PM
Anonymous said...
Mr. Jones, as "LEADER",should resign for the mess he oversees. If he does not, he should be fired. But those that make the choice are his allies, they are truly responsible.
Race should have no bearing on hiring or firing, performance has to be the scale.
November 19, 2009 7:19 PM
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Alan Grayson Slams Federal Reserve..."No More Secret Bailouts!"
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Congressional House panel approves Ron Paul's proposal to Audit the Federal Reserve
The House Financial Services Committee has approved Rep. Ron Paul’s measure to drastically expand the government’s power to audit the Federal Reserve.
The measure, based on a Paul proposal that has attracted more than 300 co-sponsors, passed, 43-26, as an amendment to a financial reform bill. Florida Democrat and fellow Fed critic Alan Grayson co-sponsored the amendment with Paul and played a leading role drumming up support for it among committee members. The adoption of this amendment is an extraordinary victory for Paul, whose libertarian, anti-Fed leanings have often been dismissed by the political establishment.
The amendment would give the Government Accountability Office much greater to audit the Federal Reserve, which has a long history of independence from congressional audits. Paul and Grayson beat out a competing measure offered by Rep. Mel Watt (D-N.C.), who after weeks of negotiations with the pair felt their measure would threaten the Fed’s monetary policy.
Grayson, however, told POLITICO in an interview that Watt’s amendment would add more restrictions on the GAO’s ability to audit the Fed, not less. “And there’s a crying need to expand it because the Federal Reserve has completely changed the way it’s done business since a year and a half ago.”
The House Financial Services Committee will vote on approving the underlying bill after Thanksgiving recess.
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Second Stimulus? Possibly Only Hope For America's Economic Survival
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Sources: MSNBC, Recovery.gov
Health Care Reform's Last Leg (Test Vote)...Can Reid Pull It Off?
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Visit msnbc.com for Breaking News, World News, and News about the Economy
Visit msnbc.com for Breaking News, World News, and News about the Economy
Health Care Reform Closing Arguments: White House, Activists, Labor Unions Eye The Finish Line
With the Senate poised to cast historic votes on health care legislation, a host of activist groups, labor unions, and even the White House itself launched their closing arguments to ensure passage.
On Friday, five different groups released polling numbers, television advertisements, robocalls and fact-checking data in an effort to cushion health care reform from its critics.
The pro-reform organization Health Care For America Now released polling data targeting three swing Democratic votes: Sens. Blanche Lincoln (Ark.), Ben Nelson (Neb.) and Mary Landrieu (La.). In each of those states, between 77 percent (Arkansas and Louisiana) and 80 percent (Nebraska) of voters believe their senators should allow legislation to have an up-or-down vote (i.e. not back a Republican filibuster), according to the results.
Moreover, in each of those states, a public health insurance option "that allows people to choose between their private insurance and a public plan," garnered majority support --- 51 percent in Arkansas, 56 percent in Nebraska and 53 percent in Louisiana.
While HCAN was taking the pulse of swing-state constituents, another organization was showing them their pulse lines. The progressive advocacy organization MoveOn.org launched a television ad on Friday targeting Lincoln, as well as Republican Senator Olympia Snowe (ME), for pushing the so-called trigger-option, which would see a public plan come into existence only if certain economic conditions are met.
Depicting a patient's heart monitor flat-lining as the doctor "waits" for the go-ahead signal, a narrator declares: "Some in Congress want a bill that requires us to wait before a public option can be triggered. Haven't we waited long enough?" (To be fair, under Reid's proposal, the public plan would not start until 2014.)
Moderate Democrats in the Senate weren't the only ones being targeted. Another pro-reform group, the Progressive Change Campaign Committee, launched a robocall campaign on Friday thanking Majority Leader Harry Reid for putting a public option in the final language of the Senate's legislation.
"I'm very thankful that Senator Harry Reid has included a public health insurance option in his health care bill. He shocked the political world by being so bold on this issue," says Lee Slaughter, a nurse of 20-plus years, in the call.
Finally, not all the efforts were geared towards the Senate. Also on Friday, the Service Employees International Union (SEIU) launched a $1 million ad campaign providing cover and gratitude for Democratic House members who are being targeted by reform opponents for voting in favor of the House's legislation. The list includes: Rep. Joe Donnelly (D-Ind.), Brad Ellsworth (D-Ind.), Baron Hill (D-Ind.), Rep. Mike Michaud (D-ME), Rep. Tom Perriello (D-Virg.), Paul Hodes (D-NH), and Rep. Dina Titus (D-Nev.).
All told, the groups were emptying the proverbial tool shed in an effort to pull reform across the finish line -- using a mix of pressure and persuasion, shame and appreciation to corral the needed votes in both chambers of Congress. It's a testament to the legislative process (and the fundraising budgets of these groups) that ten months into the health care reform debate and the ad wars, polling data and robocalls have yet to cease.
The White House, too, is flexing its muscles, though more in the role of referee than political activist. Several "Reality Check" postings were put up on the White House blog Thursday night, calling out claims that reform will encourage abortions at school "sex clinics" and balloon the deficit.
"We are paying attention to all of the disinformation and distortions that the opponents of health insurance reform are pushing around on cable, blogs, viral emails, through their allies," explained on top administration aide. "We'll be posting responses from time to time to be sure the public gets the truth."
Sources: MSNBC, Huffington Post, The Ed Show, AP
Economic Political Revolt Is Brewing On The Hill...Pres. Obama Defends Geithner
White House defends Geithner. The White House defended Treasury Secretary Timothy Geithner after he came under fire during a hearing yesterday. CNBC's Steve Liesman reports.
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Pres. Obama takes friendly fire on US Economy
The health care debate has sucked so much oxygen out of the Capitol's chambers that it's been easy to miss another simmering story: Democratic fears about the economy.
That pot has finally boiled over, with black caucus members walking out of a Barney Frank financial markup, liberals and conservatives calling for Treasury Secretary Timothy Geithner to resign and a policy victory for none other than Ron Paul on his "audit the Fed" proposal.
The tensions show why Democrats want to get the health care debate done as soon as possible — they can then spend much more of 2010, an election year, on jobs and economic reforms.
The wave of Democratic grief had been building privately for months, but Hill Democrats had held back on publicly criticizing the Obama presidency. But now, Democrats who see that their economic agenda seems to be flailing and fear getting wiped out in the 2010 congressional elections are going public with a burst of criticism, and much of it has poured out in the past 48 hours.
It’s coming from some of the most liberal supporters of the president, like John Conyers, who said Thursday on the Bill Press radio show that President Barack Obama was “bowing down” to the right.
"I'm getting tired of saving Obama's can in the White House," Conyers said. "I mean, he only won by five votes in the House, and this bill wasn't anything to write home about."
Oregon Democrat Peter DeFazio, who has called on Geithner to resign, vented his frustrations about the Obama economic team in an interview with POLITICO.
“I don’t see any trace of life coming out of these people when it comes to the real economy,” DeFazio said. “That’s not their orientation.”
White House officials defended their approach — and stood up for Geithner, in particular. “Secretary Geithner has helped steer the American economy back from the brink, and is now leading the effort on financial reform,” said spokeswoman Jen Psaki. “His focus — and ours — is on economic recovery and addressing the challenges the American people face every day. We invite anyone with good ideas, whether they agree with us or not, to be a part of the productive effort toward a solution.”
Many Obama supporters on the Hill, however, aren’t feeling particularly cooperative at the moment when it comes to economic policy. For months, Democratic aides and lawmakers had been complaining privately — a common theme was that the White House is constantly asking Democrats in Congress to “walk the plank” and take tough votes on politically toxic issues like cap and trade or the public option, while the White House plays it cool and avoids taking hard public stands.
Geithner was under fire from the right and the left all week, and Republicans at a Joint Economic Committee hearing Thursday called on him to resign as well. Geithner, for his part, was feisty, dropping blame on the economic crisis back on the laps of Republicans, saying, “You gave this president an economy falling off the cliff."
Rep. Jan Schakowsky, a liberal Illinois lawmaker, says she’s concerned the White House economic team has lost the common touch that was a hallmark of the Obama campaign.
“If voters don’t understand that we really are on their side and that we are the party of change and that we are going to make a real difference in their lives, that, top from bottom, the people that are working on policy have them in mind first and foremost every minute, we’re going to be in trouble in 2010,” Schakowsky said.
But the most disconcerting tensions for this White House may be hailing from the two minority caucuses in the House.
On Thursday afternoon, Financial Services Committee Chairman Barney Frank had to yank his landmark financial reform bill after members of the Congressional Black Caucus said they wouldn’t vote for it. The CBC members had no major problems with the Frank bill itself — a sweeping crackdown on Wall Street — but they withheld their votes because they feel as if African-American economic issues haven’t gotten nearly enough attention from Obama or the Democratic Congress.
Rep. Maxine Waters (D-Calif.) met with both Geithner and FDIC Chairwoman Sheila Bair earlier this week but clearly didn’t get enough traction on her priorities.
“The recession has created a unique systemic risk that threatens all parts of the African-American community, including the poor and the middle class,” Waters said after Frank had to pull his bill. “I have always been committed to addressing that risk and will continue to do so. This is a critical issue for my constituents.”
And the Congressional Hispanic Caucus let loose on Thursday regarding much tougher restrictions on illegal immigrants having access to the health insurance exchanges in the Senate health care bill, blaming White House chief of staff Rahm Emanuel for the tighter-than-expected legislative language.
“A forensic study would show it all leads back to Rahm Emanuel and the White House,” said Illinois Democratic Rep. Luis Gutierrez, a member of the Congressional Hispanic Caucus who worked with Emanuel when the president’s top aide was in the House.
A White House aide said that Gutierrez’s comments are “inaccurate,” but the fact that a Democratic loyalist in the House was ready to go public with these complaints is extraordinary.
There are three other key areas where the White House vs. Democratic Congress tensions could blow up at any moment:
• Regulating the Fed: Ron Paul has found some friends on the left for his crusade against the Federal Reserve, and passage of his "audit the Fed" amendment in the Financial Services Committee — a move that the central bank is resisting — sent the message that even Democrats don’t trust Chairman Ben Bernanke to make all the right choices on the economy.
• Bailout balance: The Obama administration wants to extend the Troubled Asset Recovery Program, which expires on Dec. 31, and would like to use $200 billion of the funding to look fiscally prudent and pay down the deficit. But worried Democrats want that money for all sorts of economic programs, including stemming foreclosures, small-business loans and a jobs bill. The issue remains unresolved.
• Small-business lending: The White House wants a $375 million small-business program extended as soon as possible, but there has been resistance from Congress. An administration official told POLITICO that “we are confident that members don’t want to go home to their districts for the holiday and inform them that there is no more funding for this vital program.”
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Sources: Politico, MSNBC, CNBC, Congressional Black Caucus, Obama Money, Wikipedia, Google Maps
"New" Mammogram & Cervical Cancer Screening Guidelines: Medical Science Or Politics? I Call Bull!
New Mammogram Screening Guidelines: Medical Science or Politics?
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Now Women are being told to wait longer for Pap Smear Screenings too. I call Bull!
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Doctors advise Women to hold off on Cervical Cancer Screenings. No Way! I want to live.
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Sources: MSNBC
Oprah's Exit Leaves A Huge Void...Who's Capable Of Replacing Her??
Oprah says it's over. "After much prayer and months of careful thought", Oprah Winfrey announced Friday that show will end in 2011.
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The Daily Beast's Tina Brown comments on Oprah's departure.
Oprah's exit makes waves in broadcasting. The Hollywood Reporter's Matthew Belloni discusses the financial ripples that come with the end of the broadcast version of the Oprah Winfrey show.
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Oprah decides to end show "after much prayer"
Holding back tears, Oprah Winfrey told her studio audience Friday that she would end her show in 2011 after a quarter-century on the air, saying prayer and careful thought led her to her decision.
Winfrey told the audience that she loved “The Oprah Winfrey Show,” that it had been her life and that she knew when it was time to say goodbye. “Twenty-five years feels right in my bones and feels right in my spirit,” she said.
Winfrey talked about being nervous when the program began in 1986 and thanked audiences who had invited her into their homes and lives over the past two decades.
“I certainly never could have imagined the yellow brick road of blessings that have led me to this moment,” she said.
The powerhouse show became the foundation for her multibillion-dollar media empire, but in the last year, has seen its ratings slip 7 percent. Winfrey, 55, is widely expected to start up a new talk show on OWN: The Oprah Winfrey Network, a much-delayed 50-50 joint venture with Discovery Communications Inc. that is projected to debut in January 2011. OWN is to replace the Discovery Health Channel and will debut in some 80 million homes.
Winfrey offered no specifics about her plans for the future, except to say that she intended to produce the best possible shows during her last 18 months on the air.
“Over this holiday break, my team and I will be brainstorming new ways that we can entertain you and inform you and uplift you when we return here in January,” she said. “And then, season 25 — we are going to knock your socks off.”
CBS Television Distribution, which distributes the show to more than 200 U.S. markets, held out hope it could continue doing business with Winfrey, perhaps producing a new show out of its studios in Los Angeles.
“We know that anything she turns her hand to will be a great success,” the CBS Corp. unit said in a statement. “We look forward to working with her for the next several years, and hopefully afterwards as well.”
Many fans heading into Harpo Studios on Friday morning seemed to support Winfrey’s decision.
“It’s time to elevate to something new,” said Sandra Donaldson, 59, of Indianapolis. “Whatever she does is going to be a blessing. It’s going to be rewarding and eye-opening. Her name alone opens doors.”
Once a local Chicago morning program, the production evolved into television’s top-rated talk show for more than two decades, airing in 145 countries worldwide and watched by an estimated 42 million viewers a week in the U.S. alone.
Audience members described the atmosphere inside the studio Friday as tense and emotional, with some reaching for tissues as Winfrey announced her decision. But amid the sadness, there also was understanding among the crowd, Donaldson said afterward.
“When I looked around, there was a peace there, because I like to think everybody was happy for her decision to move on,” she said.
Fans expressed hope that Winfrey would soon announce another project.
“Oprah, she impacts everybody, her life, the way she gives,” said Shawana Fletcher, 29, of Chicago. “I hope she’s not totally done. That’s what we’re praying.”
Winfrey’s 24th season opened this year with a bang, as she drew more than 20,000 fans to Chicago’s Magnificent Mile for a block party with the Black Eyed Peas. She followed with a series of blockbuster interviews — Mike Tyson and Evander Holyfield, Whitney Houston and ESPN’s Erin Andrews, and just this week, former Alaska governor and GOP vice presidential candidate Sarah Palin.
As a newcomer, “The Oprah Winfrey Show” chipped away at talk-show king Phil Donahue’s dominance. Later, it turned to inspiration. The show’s coverage ranged from interviews with the world’s celebrities to an honest discussion about Winfrey’s weight struggles.
In 1986, pianist-showman Liberace gave his final TV interview to Winfrey, just six weeks before he died. In a 1993 prime-time special, Michael Jackson revealed he suffered from a skin condition that produces depigmentation. Tom Cruise enthusiastically declared his affection for the much-younger Katie Holmes on the program in 2005 — and jumped on the couch to prove it.
In 2004, Winfrey unveiled her most famous giveaway, when nearly 300 members of the studio audience opened a gift box to find the keys to a new car inside. The stunt became a classic show moment as much for Winfrey’s reaction — “You get a car! You get a car! You get a car! Everybody gets a car!” — as its $7 million price tag.
The show also became a launching pad for Oprah’s Book Club, which then launched best-sellers. The titles ranged from “Song of Solomon” and “Paradise” by Toni Morrison to Wally Lamb’s “She’s Come Undone” and Elie Wiesel’s “Night.”
For others, the selection backfired. “A Million Little Pieces” exploded in sales after Winfrey chose the James Frey memoir in fall 2005. Soon after, it was revealed as a fabricated tale of addiction and recovery, and Winfrey later chewed out Frey on her show.
The loss of “The Oprah Winfrey Show” would be a blow to CBS Corp., which earns a percentage of hefty licensing fees from TV stations that use it — largely ABC affiliates. CBS Chief Executive Leslie Moonves told analysts two weeks ago that the contract with the show runs through most of 2011 and “if there’s a negative impact, it wouldn’t hit us until ’12.”
“Oprah’s been a force of media and there’s really no person you can look to out there who you could say, ‘That’s the heir apparent,”’ said Larry Gerbrandt, an analyst for Media Valuation Partners in Los Angeles. Gerbrandt noted many stations build their schedules around Winfrey’s show.
“It’s a big loss, but not as huge as it would have been 10 years ago,” he said. “However, it still commands the biggest audience and ABC station competitors are licking their chops.”
Talk of the show’s end often has accompanied Winfrey’s contract negotiations. Before signing her current contract in 2004, she talked about quitting after the 2005-2006 season. As far back as 1995, she called continuing “a difficult and important decision.”
Winfrey started her broadcasting career in Nashville, Tenn., and Baltimore, Md., before relocating to Chicago in 1984 to host WLS-TV’s morning talk show “A.M. Chicago” — which became “The Oprah Winfrey Show” one year later. She set up Harpo the following year and her talk show went into syndication.
In the late afternoon, the show is well above others in the same time slot, with 6.8 million viewers on average in the last couple months, compared with “Dr. Phil” with 3.8 million, “Ellen” at 2.8 million and “Dr. Oz” with 3.5 million, according to The Nielsen Co.
Even with such a lead, her ratings have been falling over the years, with an average audience cut in half from 12.6 million in 1991-92 to 6.2 million in 2008-2009.
Winfrey built a media empire powered by the show’s success. Harpo Studios produces shows hosted by Dr. Phil McGraw and celebrity chef Rachael Ray. O, The Oprah Magazine was the nation’s 7th most popular magazine in the first half of 2009.
Earlier this year, Forbes scored Winfrey’s net worth at $2.7 billion.
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Sources: MSNBC, The Daily Beast, Google Maps
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