“The Sentiment Is Swinging”: Unanimous Senate Vote Bolsters Movement To Break Up Big Banks
It’s nearly impossible to get 99 U.S. senators to agree on anything.
But this past weekend, 99 senators agreed to send a non-binding message that the $83 billion subsidy “too big to fail” banks get from the government needs to end. The measure was co-sponsored by senators Sherrod Brown (D-OH) and David Vitter (R-LA).
The implicit subsidy first came to light in February when a Bloomberg News report found that “recurrent bailouts of the largest financial institutions have given [big banks] a unique advantage: They get a break on their borrowing costs, because creditors expect taxpayers to support them whenever they get into trouble.”
Shortly thereafter, Attorney General Eric Holder made the shocking admission that the Justice Department exercises restraint in prosecuting big banks for fear of shocking the global financial system.
“I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy,” Holder said, during testimony to the Senate Banking Committee.
Now all of the Senate’s Republicans have joined with senators Brown and Elizabeth Warren (D-MA) — who have long warned of the big banks’ continued ability to wreck havoc on the economy — to call for an end to the implicit subsidy.
“I’m glad that Republicans and Democrats can agree: ‘Too big to fail’ needs to end, and these big-bank subsidies make no sense,” Senator Warren said.
Bank lobbyists have denied that the subsidy exists. But as a Bloomberg editorial notes, they’ve rejected any steps that would prevent the government from having to serve as their backstop in case of a crisis.
“If big banks don’t get a subsidy on their debt, it’s hard to understand why they’re so adamantly opposed to measures, such as increased capital requirements, that would put a limit on their borrowing,” the editors noted. “Large banks commonly borrow $25 or more for each $1 in equity — or capital — they get from their shareholders, compared with less than 50 cents per $1 of equity for the average U.S. corporation.”
Financial reform following the financial crisis was weakened by bank lobbying. As Senator Dick Durbin (D-IL) noted at the time, the “banks own the place.” And by “the place,” he meant Congress.
This vote shows the sentiment is swinging against the banks. Whether senators are willing to vote against them when actual legislation is on the line still remains to be seen.
By: Jason Sattler, The National Memo, March 25, 2013
“Shallow, Ignorant, And Totally Unserious”: Why Republicans Can No Longer Be Trusted on National Security
It’s been clear, at least since the 2012 election, that the Republican Party has abrogated its role—really, abandoned any interest—in shaping or seriously discussing American foreign policy. But only recently has this indifference shifted into toxic territory, and on Tuesday the fumes formed a poisonous cloud, the likes of which hadn’t been witnessed in decades.
The occasion was the Senate Armed Services Committee’s vote on Chuck Hagel’s nomination as secretary of defense. In the end, Hagel pulled through, but only on a party-line vote (all Democrats in favor, all Republicans opposed) and after a debate that raised doubts less about Hagel than about the modern GOP’s inclination—and the Senate’s ability—to oversee anything as consequential as national security.
Hagel’s Jan. 31 confirmation hearings had been appalling enough—not just for his own lackluster performance, but more for his inquisitors’ bizarrely narrow focus. They asked almost nothing about the issues that will face the next defense secretary: the budget, the roles and missions of the Army, the balance of drones vs. manned aircraft, the size of the Navy, the future of Afghanistan, or the “pivot” from Europe to Asia. Instead, they hectored the nominee about the adequacy of his fealty toward Israel, his animosity toward Iran, and whether he was right or wrong about the 2007 troop-surge in Iraq.
There was all that in the follow-up session on Feb. 12, plus a whiff of paranoia and sedition that’s rarely been cracked open since the days of Joseph McCarthy.
The stench started wafting through the air with the comments of Sen. David Vitter, Republican of Louisiana, who trumpeted the warnings that in 2008 Hagel gave a speech to the Arab-American Anti-Discrimination Committee. Vitter called for halting the hearings until a video of the speech could be found, to see whether the nominee had voiced extremist or anti-Israeli comments.
Then came Sen. Ted Cruz, freshman Republican from Texas, who seemed to be explicitly angling for McCarthy’s inheritance. Cruz shuddered that Hagel had made $200,000 over a two-year period from Corsair Capital, which has contracts abroad, yet he could not tell the committee whether any of that money came from a foreign government. It would be “relevant to know,” Cruz intoned, “if that $200,000 … came directly from Saudi Arabia, came directly from North Korea. I have no evidence to suggest that it is or isn’t,” but there should be an investigation.
At that point, Sen. Bill Nelson, Democrat of Florida, lambasted Cruz for having “impugned the patriotism” of Hagel, for accusing him of getting “cozy” with terrorists.
Now Cruz is but a freshman; his idiocies can’t be ascribed to his party as a whole. But Sen. James Inhofe of Oklahoma is the Armed Services Committee’s top-ranking Republican, and he not only sided with Cruz but snapped back at Nelson’s admonitions. Hagel’s nomination had been “endorsed” by the Iranian government, Inhofe said. “You can’t get any cozier than that.”
That was too much for Sen. Carl Levin, the usually amiable and tolerant committee chairman. “I have been endorsed by people I disagree with totally,” he said. “I don’t want people who hate me to ruin my career by endorsing me.”
Sen. Claire McCaskell went further, warning Inhofe and Cruz, in a “have you no shame, senator” moment, to “be careful” with their tactics of character-smear and guilt-by-association.
Even Sen. John McCain, the erstwhile Republican leader, seemed abashed by the storm he’d helped unleashed against the nominee a month before. “I just want to make it clear,” McCain said, “Sen. Hagel is an honorable man. He has served his country. And no one on this committee at any time should impugn his character or his integrity.” It was reminiscent of the time, on the 2008 campaign trail, when a woman, fired up by the gunplay rhetoric of his running mate Sarah Palin, started going on about the socialist Muslim Barack Obama—and McCain felt compelled to dial down the passion, defending his opponent as a good American. One wonders, does McCain lie awake at night, gnashing his teeth at the hash that he’s made of his own reputation and the noisome role he’s played in turning his country’s politics into a cesspool?
Still, McCain’s move to reticence had no effect on Inhofe, who clanged the alarm bells still louder. Hagel, he said, had voted against a bill labeling the Iranian Republican Guard Corps as a terrorist organization (because, by definition, it wasn’t). He’d voted against unilateral sanctions against Iran (because unilateral sanctions have no effect). He’d appeared on Al Jazeera TV and agreed with the show’s hosts that Israel had committed war crimes (the first part is true, the second part is not).
On the few occasions during the session when Republican senators explored substantive issues, it was soon clear they had no idea what they were talking about. Sen. Kelly Ayotte, a Republican from New Hampshire who has often stood alongside McCain and Sen. Lindsey Graham to bash President Obama on Benghazi, tried to make much of Hagel’s co-authorship of a 2012 report by an ad hoc group called the U.S. Global Zero Nuclear Policy Commission. Ayotte expressed shock that, in the wake of North Korea’s third nuclear test, Hagel had not removed his name from this report, which called for eliminating one leg of our nuclear triad. “We have three legs to our nuclear triad,” she said (yes, senator, that’s why it’s called a “triad”), as if it were some nuclear holy trinity.
Ayotte too is new; she seems not to know what a nuclear triad is. She certainly isn’t aware that, even among conservative thinkers in the nuclear-weapons realm, the idea of scrapping one leg of the triad—namely, land-based intercontinental ballistic missiles—is at least a respectable notion. The argument is that ICBMs are vulnerable to nuclear attack and, at the same time, tipped with multiple, highly accurate warheads that make an opponent’s ICBMs vulnerable to attack. In other words, by their very existence, ICBMs create an incentive for both sides to launch a pre-emptive attack in the event of a crisis.
But Ayotte’s remarks were seconded by Sen. Jeff Sessions, who does know something about nukes yet seems trapped in 1982. Hagel, he charged, “comes out of the anti-nuclear left,” as if, first of all, there is such a thing these days. It’s worth noting who wrote that Global Zero report along with Hagel: Thomas Pickering, a veteran U.S. diplomat and former ambassador to Moscow; Richard Burt, a State Department negotiator in the Reagan administration; retired Gen. John Sheehan, former commander-in-chief of U.S. Atlantic Command; and—not least—retired Gen. James Cartwright, former vice chairman of the Joint Chiefs of Staff and, before that, head of U.S. Strategic Command, which manages the nuclear arsenal. Hardly a pack of lefties.
Not to sound like a Golden Age nostalgic, but there once was a time when the members of the Senate Armed Services Committee prided themselves on having an understanding of military matters. They disagreed in their conclusions and sometimes their premises. But most of them worked to educate themselves, at least to the point where they could debate the issues, or ask questions of a general without coming off like complete idiots. The sad thing about this new crop of senators—especially on the Republican side—is they don’t even try to learn anything; they don’t care if they look like complete idiots, in part because their core constituents don’t care if they do either.
After Tuesday’s vote, Sen. Levin adjourned the session, saying, “We thank you all, and we look forward to another wonderful year together.” The other senators laughed, but it really wasn’t funny.
By: Fred Kaplan, Slate, February 13, 2013
Toxic Misfits: Donald Trump, Birthers And Other Hazardous Materials
It seems that there is no end in sight. You can’t turn to any television channel or listen to any radio station without hearing something that has to do with Donald Trump and his vile birther rants. One wonders when will it all end. Some have given Trump a pass in this regard. Many believe that he is simply doing it for the attention while others, for some odd reason, see his actions only as a joke.
It seems that this whole “birther” issue began with Jim Geraghty, a conservative blogger for National Review and National Review On-line. The spark for the birther campaign began by Geraghty suggesting that President Obama’s first and middle names were not the same as listed on his birth certificate. The embers were kindled by Jerome Corsi in an interview on Fox News where the idea that Obama’s birth certificate was fake. This quackery has been non-stop since.
This birther theory was elevated to a different level of insanity by Orly Taitz, who not only believes that Mr. Obama was not born in the United States, but also believes that Hawaii cannot be considered part of the United States “unless it can produce an authentic statehood certificate”. Taitz, mind you, emigrated from the Soviet Union to Israel and then to the United States and is a dual citizen of Israel and the U.S. In her view, “the islands of Hawaii appear to be colonies of Kenya”. As such, “everyone born in Hawaii is legally not an American but a Kenyan”. Never mind that these assertions have no basis of fact. Joshua Wisch, Attorney General of Hawaii has repeatedly noted that the presidents certificate of live birth is on file in the archives of the Department of Health of Hawaii.
Then you have the likes of Andy Martin, Michael Savage, G. Gordon Liddy, Lars Larson, Bob Grant and…. oh yes, Rush Limbaugh, Sean Hannity, Lou Dobbs, Chuck Norris, Sarah Palin, Michele Bachmann, Newt Gingrich, Roy Blunt and David Vitter.
The latest participant in this land of make believe is none other than Donald Trump. Over the past several weeks, Trump seems to have gone out of his way to etch his place in history as the “birther of all birthers”. He has been given numerous opportunities by the media, often unchallenged, to espouse again and again what he surely knows to be flat out lies. Despite “prima facie” evidence, Trump has chosen to continue down a path that can be best described in every category as bigoted, racist and divisive.
I have been trying to figue out why this gang of “misfits” continue to propagate this charade on the American people. Surely they cannot believe that actions of this nature will endear them to the majority of the American people, or do they? It really makes you wonder if they are merely front persons for the real behind the scenes “power players” whose goal is to completely alienate and isolate certain segments of the population. This idea seems to have worked very well in the past with groups such as the teaparty and the christian right. Could it be that they are attempting to expand their grasps to include even more radical segments?
Power, radicalism, extremism, racism, bigotry, hate, fear…they all work, but at what cost to the rest of the country. There is a bigger picture here…one larger than Trump or Bachmann or Newt. The “power players” are all about the preservation of an aggressive, radical and dangerous conservative ideology…an ideology that is appealing more and more to the fringe and most noxious elements of our society…nothing more and nothing less.
Continued unfettered tolerance of these types of behavior is merely an assent of their vile actions and intents. That is just not acceptable. At some point, good people will have to take a stand and put a stop to the shananigans of these toxic misfits.
By: Raemd95, April 20, 2011
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 