Posts tagged with 'Martha Coakley'
Weekly Pulse: Obama to Push for Reconciliation
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By Lindsay Beyerstein, Media Consortium blogger
Today, President Barack Obama will deliver a speech to Congress outlining his plan to move forward on health care reform. The president is expected to advocate the use of budget reconciliation.
Art Levine of Working In These Times warns that some centrist Democrats are already getting cold feet on reconciliation. Sen. Kent Conrad (D-ND), chair of the Senate Budget Committee, went on TV to declare reconciliation impossible. These guys just don’t get it. It’s reconciliation or defeat. There is no other way. Without reconciliation, the bill dies. Without a bill, the Democrats get massacred in the mid-term elections. (more…)
Weekly Diaspora: Does Coakley’s Loss Spell Trouble for Immigration Reform?
By Nezua, Media Consortium Blogger
Professional pundits and Democratic politicians are in a frenzy over what Martha Coakley’s senate seat loss to Republican Scott Brown might mean for American politics.
Immigration reform in jeopardy
As Harold Meyerson of the American Prospect reports, the loss of one seat probably won’t derail heath care reform, but it does make the chances of passing immigration reform slimmer. Meyerson writes that immigration reform is “necessary to restore our economic vitality and political equality,” and actually passing reform would benefit the Democratic faction. Unfortunately, that means that immigration reform will require 60 votes in order to pass the senate. (more…)
Weekly Pulse: What Does Coakley’s Defeat Mean for Health Care Reform?
By Lindsay Beyerstein, Media Consortium Blogger
Last night, Republican Scott Brown defeated Democrat Martha Coakley in the special election to fill Teddy Kennedy’s senate seat in Massachusetts. Coakley’s loss puts health care reform in jeopardy.
With Coakley’s defeat, the Democrats lose their filibuster-proof 60-seat majority in the Senate. However, as Paul Waldman explains in The American Prospect, Coakley’s loss is not the end for health care reform.
Remember, the Senate already passed its health care reform bill in December. Now, the House has to pass its version of the bill. The original plan was for House and Senate leaders to blend the two bills together in conference to create a final piece of legislation (AKA a conference report) that both houses would vote on. Once the Democrats are down to 59 votes, the Republicans can filibuster the conference report and kill health care reform.
But if the House passes the same bill the Senate just passed, there’s no need to reconcile the two bills. This so-called “ping pong” approach may be the best way to salvage health care reform. Some of the flaws in the Senate bill could still be fixed later through budget reconciliation. It would be an uphill battle, but nothing compared to starting health care reform from scratch.
The second option would be to get the bill done before Scott Brown is sworn in. According to Waldman, there could be a vote within 10 days. The House and Senate have already drafted some compromise legislation, which Waldman thinks is superior to the straight Senate bill. If that language were sent to the Congressional Budget Office immediately, the Senate could vote before Brown is sworn in.
Sen. Majority Leader Harry Reid (D-NV) said in a statement last night that Brown won’t be sworn in until the election results are certified, a process that could take two weeks. Historically, the winners of special Senate elections have taken over from their interim predecessors within a couple of days. If the Republicans were in this position, they’d use every procedural means at their disposal to drag out the process. The question is whether the Democrats have the fortitude to make the system work for them.
Remember how the Republicans did everything in their power to hold up the Senate health care vote, including forcing the clerk to read the 767-page bill aloud? They were trying to delay the vote until after the Massachusetts special election. If it’s okay for the GOP to stall, the Democrats should be allowed to drag their feet on swearing in Brown.
Also, remember how the Republicans fought to keep Al Franken from being seated after he defeated Norm Coleman? For his part, Franken says he’s determined to pass health care reform one way or another, according to Rachel Slajda of Talking Points Memo.
Incongruously, some Democrats are arguing that rushing to a vote would be a violation of some vague democratic principle. Sen. Jim Webb (D-VA) wasted no time in proclaiming that there should be no vote before Brown was sworn in. Rep. Barney Frank (D-MA), of all people, averred last night that the Democrats should respect the democratic process and start acting like they have 59 votes while they still have 60.
All this talk of “respecting the process” is hand waving disguised as civics. According to the process, Scott Brown isn’t the senator from Massachusetts yet. According to the process, you have the votes until you don’t.
Talk about moving the goalposts. It’s bad enough that we need 60 votes to pass a bill on any given day. Now, they’d have us believe that we also need 60 votes next week. Webb and Frank are arguing that Brown’s victory obliges Democrats to behave as if Brown were already the Senator from Massachusetts. Of course, if Webb won’t play ball, it’s a moot point. The whole fast-track strategy is predicated on 60 votes. Steve Benen of the Washington Monthly thinks that Webb effectively took the fast-track option off the table with his strongly worded statement.
Katrina vanden Huevel of The Nation argues that this historic upset should be a wake up call to President Barack Obama to embrace populism with renewed fervor. I would add that Obama was elected on a platform of hope and change. There is no better way to fulfill a promise of change than to reshape the nation’s health care system and provide insurance for millions of Americans.
Ping pong, anyone?
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Weekly Audit: Why Accountability Matters
by Zach Carter, Media Consortium MediaWire Blogger
With workers all over the globe trudging through a catastrophic recession, it’s almost a given that governments will be battling the economic slide for a long time. Part of the effort to rebuild must involve new rules and regulations, but meaningful systems for economic accountability will be just as essential. If we do not hold the reckless executives who caused this crisis accountable for their actions, we risk regressing into similar turmoil in the near future.
We all know that times are tough, and almost all of us agree on the cause: A massive Wall Street risk-binge combined with an almost total failure of regulatory oversight. It’s surprising that few meaningful criminal charges have been filed amid what may very well be the worst financial crisis in history. Bernie Madoff will likely spend the rest of his life behind bars, but the subprime mortgage brokers who specialized in predatory loans–and the Wall Street banks that bought them–have yet to face consequences in court.
In The American Prospect, Tim Fernholz details the efforts of some state-level officials to investigate and punish white-collar crime at the nation’s largest financial firms. Much of the problem, Fernholz explains, results from an insane legal landscape at the federal level. Active deregulation of the financial sector, which began in the 1980s, is shielding the irresponsible risk-taking that caused the current crisis from legal penalties.
Despite these obstacles, Massachusetts Attorney General Martha Coakley and other key officials are going after some of the worst offenders, and have successfully taken action against some of the predatory profiteers, including subprime mortgage lender Fremont Investment & Loan and Wall Street icon Goldman Sachs. Coakley secured an injunction against Fremont to prevent the company from foreclosing on its borrowers, and Goldman agreed to modify $50 million in predatory mortgages.
But while Coakley’s investigations may bring some much-needed relief to troubled homeowners, they’re only part of the solution. If executives that approved their companies’ subprime policies go through this crisis unscathed, it will be difficult to deter similar behavior in the future.
Fremont had to be sold off last year at fire-sale prices to avoid bankruptcy, but Goldman has weathered the economic downturn better than many of its Wall Street brethren. Much of the company’s resiliency, however, stems from its ability to secure billions upon billions of dollars of bailout financing from the U.S. government. Over at AlterNet, Jim Hightower blasts Goldman for its multiple avenues of taxpayer support and emphasizes that only the notorious Troubled Asset Relief Program (TARP) comes with any strings attached whatsoever. While Congress attached some very modest restrictions on executive compensation to the TARP bailout, the FDIC and the Federal Reserve have provided big banks with trillions in loans and guarantees completely free of restrictions on how these perks are deployed.
Goldman received $10 billion under TARP, which the company hopes to repay soon to shrug off those CEO pay limits. When the government bailed out AIG, $12 billion of the funds were directed Goldman’s way. But perhaps the greatest and lowest-profile outrage comes in the form of the FDIC’s Temporary Liquidity Guarantee Program. Hightower notes that the FDIC has guaranteed $28 billion of Goldman’s recently issued corporate debt without imposing any restrictions on the Wall Street giant. In short, if Goldman were to default, the government would pay off its investors. This taxpayer guarantee has allowed Goldman and many of its banking peers to secure capital at exceptionally low rates, helping the firms survive during a time when any financing is hard to come by.
Even if Goldman is able to repay its TARP money, the company remains thoroughly dependent on taxpayer assistance. Once the TARP funds are paid off, Goldman will be free to pay its executives whatever it wants—even when that salary is subsidized by American tax dollars. That’s a pretty perverse definition of accountability.
Of course, botched bailouts are not unique to the financial sector. As John Nichols explains in The Nation, the terms of automaker Chrysler’s bankruptcy proceeding include plans to close down manufacturing plants across the Midwest, a strategy that undermines the entire economic justification for bailout: Sparing investors pain in order to save jobs.
“Tens of billions of taxpayer dollars are being poured into Chrysler and General Motors, ostensibly to ’save’ the U.S. auto industry,” Nichols writes. “Yet, the companies have acknowledged that they plan to use the money to shutter factories, lay-off tens of thousands of factory workers and dramatically downsize dealership networks–at the cost of as many as 100,000 additional jobs.”
Still worse, it appears that both Chrysler executives and officials from the Obama administration mislead Congress on the implications of the bankruptcy. Nichols cites a letter from Rep. Dennis Kucinich, D-Ohio, in which the lawmaker says Congress was told there would be no permanent job losses a result of the Chrysler bankruptcy filing. The very next day, plant closings were announced in Michigan, Missouri, Wisconsin, and Ohio.
Even the economic stimulus package rewarded companies with a history of recklessness. In a piece for Salon, ProPublica journalists Michael Grabell and David Epstein reveal how contractors that have paid substantial fines for violating environmental regulations, federal safety rules and laws against racism have been able to score new business with the federal government. The worst offender? A contractor known as CACI International, which has been awarded three contracts worth $1.5 million under the stimulus package, despite ties to abuses at Abu Ghraib prison in Iraq.
CACI helped hire interrogators at Abu Ghraib, but an Army investigation found that the contractor ended up employing people with “little or no interrogator experience.” Abuses committed by CACI employees included dragging a handcuffed prisoner on the ground, placing a prisoner in an “unauthorized stress position,” dressing a prisoner in women’s underwear and lying to investigators about using dogs in interrogations, according to Grabell and Epstein.
If the government relies on criminals to build the recovery, the public is not going to get the results it needs. But the recovery is only part of the solution to the current economic crisis. If we fail to prosecute executives whose active scheming and criminal negligence brought down the global economy, we are inviting more of the same behavior in the future.