Wednesday, March 11, 2009

Earmark Reforms, Banks on Paying Back the Money


Andrew S Grove
Kathleen Parker
Ruth Marcus

“The awarding of earmarks to private companies is the single most corrupting element of this practice, as witnessed by some of the indictments and convictions we have seen,” Obama said at the White House. “Private companies differ from the public entities that Americans rely on every day – schools, police stations, fire departments – and if they are seeking taxpayer dollars, then they should be evaluated with a higher level of scrutiny.” - President Barack Obama

This morning President Obama announced that there were going to be some reforms on earmarks. He doesn't believe that they should be gotten rid of entirely because there are some good projects that get funded that way, but the process will change. No more writing them into bills at the 11th hour; from now on all earmark proposals must be posted on that representative's website and there must be public give and take. The administration has 20 days to evaluate the worthiness of the earmark, and if deemed abusive, can try to have it taken away. 

No more earmarks to private companies. Earmarked funds must go out to biddable contracts just like federal contracts now do, and congressmen cannot receive money for an earmark. More to come as that's all I remember from the press conference.

Contrast this with the article from CQ Politics, which describes how the Congressional Republicans have approached the earmark problem: "In November, Boehner and House Minority Whip Eric Cantor proposed an amendment to House Republican rules to place a moratorium on earmark requests by GOP members until a Republican earmark reform panel came up with recommendations. However, that amendment was rejected by GOP lawmakers. The proposed moratorium on earmarks for the fiscal year 2010 spending bills has been discussed by Republicans but there has been no agreement on how to proceed." So, the passing of the current omnibus bill was the last nod to the old way of procurement. Party's over. I think that Obama let these earmarks be kept in the bill because he knew it would stir up outrage. Let the steam build up, and then announce his solution, turning that negative energy into one more favorable towards his administration, pretty slick.

The NY Times reports this morning that some banks don't like the amount of oversight that the bailout money comes with: "As public outrage swells over the rapidly growing cost of bailing out financial institutions, the Obama administration and lawmakers are attaching more and more strings to rescue funds.

The conditions are necessary to prevent Wall Street executives from paying lavish bonuses and buying corporate jets, some experts say, but others say the conditions go beyond protecting taxpayers and border on social engineering.

Some bankers say the conditions have become so onerous that they want to return the bailout money. The list includes small banks like the TCF Financial Corporation of Wayzata, Minn., and Iberia Bank of Lafayette, La., as well as giants like Goldman Sachs and Wells Fargo."
If the banks can give the money back, then they didn't need it in the first place and they were ripping us off...It adds to the argument that the banking industry needs serious reform and more transparency. Make AIG tell us where the money has gone, and make each bank giving money back explain to us why they said they needed it in the first place...

Adding fuel to the fire, this from TPM is an explanation on why the FDIC has problems guaranteeing federal insurance on your deposits: "Typically you would build up a [FDIC] reserve during the halcyon days to protect yourselves during a recession," says one banking expert. But from 1996-2006, that simply did not happen, with Congress refusing to allow the FDIC to collect premiums from most banks. The bank insurance fund is now seriously squeezed, with more bank failures on the horizon." Make sure to write to your congressman and thank them for a job well done these past 15 years or so...


Politico reports on how past Bush administration employees are trying to keep his image positive these days, when so many of his past practices are being changes and negated: "Former White House press secretary Ari Fleischer calls the Bush pundits “a loose confederation of people united in our belief in what President Bush did, and we’re freer now to talk about some things than we used to be — good and bad.”

The Bush defense forces include Fleischer; former press secretary Dana Perino; Bush political czar Karl Rove, who has contracts with Fox News, The Wall Street Journal and Newsweek; economics guru Tony Fratto; the prolific Peter Wehner, former director of the White House Office of Strategic Initiatives; and the graceful speechwriter Michael Gerson, who writes an opinion column for The Washington Post."
 Every time Obama or one of his staff criticizes the Bush policies, one of these guys are going to try and make the case that there were some good things Bush did or that the policy wasn't really that bad, it's just a matter of perception...

Late night jokes:

"Well, this is kind of exciting. There's talk president Barack Obama wants to lift trade restrictions with Cuba, which is great news for anybody here looking to buy a '58 Buick." -- Jay Leno

"Hey, did you see this on the news? I thought this was nice. Over the weekend in Washington, DC, First Lady Michelle Obama was at a homeless shelter serving food to the homeless. Wasn't that nice? Reaching out to the middle class. I thought that was fantastic." -- Jay Leno

"And former President George W. Bush says he'll start a national speaking tour soon. You know, as soon as he learns how to speak." -- Jay Leno

"President Obama signed a bill today overturning President Bush's restrictions on stem-cell research. He said stem-cell research can help save lives, cure disease and help develop better hair plugs for Joe Biden." -- Jay Leno

"And politicians in the state of Iowa have voted to rename their Department of Elder Affairs. They're changing the name to the Department of Aging. Have they thought this through? I mean, now, elderly people will be calling the DOA." -- Jay Leno

"Rush Limbaugh is on the cover of 'Newsweek.' It just came out today. You see, it's got a big thing across it that says, 'ENOUGH!' But is this about politics or dieting?" -- Jay Leno

"And astronomers say they have discovered enormous black holes 5 billion light years from Earth that is sucking up everything in their path. They name the black holes 'AIG-1' and 'AIG-2.'" -- Jay Leno

"How about this satellite they just launched that will look for Earth-like planets in our galaxy that might contain life? They say they're trying to answer the question, 'Is there intelligent life on other planets, and if there is, will they loan us money?'" -- Jay Leno

"Stock market keeps going down and down and down. Today I tipped my cabdriver with 100 shares of GM stock." -- David Letterman

"Republicans are attacking Barack Obama because he now wants to negotiate directly with the Taliban. Obama responded, 'Hey, right now I'd rather deal with the Taliban than with Republicans.'" -- Jimmy Fallon

"North Korean President Kim Jong-il won his re-election with 100% of the vote. Kim says he looks forward to finding common ground with his opponent -- until he kills him." -- Jimmy Fallon



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