Holder & Donovan Open Comedy Act in Vegas

The editorial in yesterday's Las Vegas Sun might have been titled "Moving Forward, Stabbing You in the Backward". Allegedly co-written by Attorney General Eric Holder and HUD Secretary Shaun Donovan, it's a cringe-worthy, craven apologia shamelessly directed at residents of one of the states hardest hit by the foreclosure crisis.

You have to read it to believe it.  I'm posting a somewhat condensed version, with translation (you can peruse the whole slimy thing here. And the daffy duo also crossposted their self-parody at the Obama-friendly Daily Kos for the even greater convenience of the koolaid-bloated masses) --

Too often, real progress in Washington can be stymied by bureaucratic red tape, turf fights, or conflicts between federal and state authorities. Unfortunately, it has become a place where partisan deadlock and political games can threaten to crowd out substantive debate.
In times of crisis – when people’s livelihoods are in jeopardy and families are losing their homes to foreclosure – they deserve better than intransigent bureaucracy. They need and deserve a government that actually solves problems.
This past week, the Obama Administration and a bipartisan coalition of 49 state attorneys general demonstrated what can be accomplished when people put aside turf wars and focus on what they can do to make things better. By working closely with one another across federal agencies, state boundaries, and party lines, we reached a historic mortgage servicing settlement on behalf of American homeowners.

(Translation: We have been putting pressure on a few recalcitrant Attorneys General for well over a year now, trying to get them to cave to a sweetheart deal letting the banksters off the hook. We are absolutely blaming the AGs for their altruistic foolishness -- and we are also accusing them of allowing even more homeowners to be foreclosed on while they diddled about trying to do the right thing instead of the expedient thing. We finally co-opted them through our sheer brute force. We worked closely with them by getting right in their faces. We are disdainfully reducing their bravery in the face of an overreaching federal government to a political "turf war.")

The need for a settlement on this scale has long been clear. Some five years after the housing bubble burst, America continues to pay a steep price. Lenders sold loans to people who couldn’t afford them and packaged mortgages to make profits that turned out to be nothing more than a mirage. Their actions hurt millions of families who did the right thing, but still lost their houses or saw their home prices drop. And, unfortunately, as our extensive investigations found, abuses continued long after consumers bought their homes.

(Translation: we were well aware this whole time of massive fraud and conspiracy. Even though our "extensive investigations" uncovered abuses, we did nothing. How unfortunate. We are not mentioning in this editorial that the crimes continue to this very day. Because we are corrupt, do-nothing political hacks. We are also throwing minorities under the bus by putting equal blame on some of the victims who were snookered into signing fraudulent documents. They rose above their station by buying into our American Dream malarkey. Even though many are uneducated and barely literate, we brazenly claim that they knowingly bit off more than they could chew. We continue to insinuate that poor black and brown people hurt the "responsible" homeowners just as much as the mega-banks did.)

In response to thousands of mortgage servicing complaints fielded by the U.S. Department of Housing and Urban Development (HUD), state attorneys general, and banking regulators across the country, HUD initiated a large-scale review of the Federal Housing Administration’s (FHA) 10 largest servicers in the summer of 2010. Devoting some 6,000 hours to reviewing servicing files for thousands of FHA-insured loans, the scope of this review soon broadened to encompass a long list of mortgage servicing issues, including lost paperwork, long delays, and missed deadlines for loan modifications. The Justice Department’s U.S. Trustees Program reviewed more than 37,000 bankruptcy claims and motions filed by the top five servicers. And HUD’s Office of the Inspector General, the Justice Department, and state authorities discovered that the country’s five largest loan servicers routinely signed foreclosure-related documents without knowing whether the facts they contained were correct.

Some have asked why we don’t address these actions by taking the banks to court. But rather than pursuing hundreds of lawsuits with varying degrees of success, the goal of this settlement has been to benefit struggling homeowners and to do so now – not sometime in the future, when it may be too late to help many families. 

(Translation: our chutzpah knows no bounds. We started this huge investigation a year and a half ago, spent 6000 hours reviewing files, looked at 37,000 pieces of paper filed by mortgage servicers and banks. We chose not to prosecute, because the success would only have been "varied". So we decided to give up while we were ahead, sweep the whole thing under the rug, and throw a few pennies at the victims before they die and it's too late.  Why we are not being investigated ourselves for legal malpractice and dereliction of duty is beyond the scope of this editorial and may be chalked up to our unbridled arrogance.) 

This settlement also forces banks to clean up their acts – and to fix the problems covered during our investigations – by committing them to major reforms in terms of how they service mortgage loans. This is significant, given that these banks service nearly 2 out of every 3 mortgages. And these new customer service standards are in keeping with the Homeowners Bill of Rights recently announced by President Obama – a single, straightforward set of commonsense rules that families can count on, requiring lenders and servicers to honor a long list of rights for those facing foreclosure.

 (Translation: We choose to call the crimes of the banksters "problems" in order to further absolve them and us, their willing and able co-conspirators and accessories during and after the fact. Slapping them on the wrist will scare the bejesus out of them and make them honest. They need a dose of common sense, not a jail term.)

 While this historic settlement isn’t designed to address all the issues of the housing crisis, it will offer significant help to those who suffered the most harm. Alongside the broad-based refinancing plan President Obama announced to help homeowners, it provides a path toward stability for our housing market and our broader economy. And, by ensuring that banks and mortgage servicers fulfill their essential obligations – and taking major steps to hold these institutions accountable – it proves that we can make real progress, and achieve extraordinary results, when we work together.

(Translation: A path toward stability for our housing market and our broader economy is simply doublespeak for more profits for the banks and a surge in their stock prices. This travesty proves that not only can they get away with murder, they can always count on us, their 'umble servants, to help them and cover up for them as they continue their stranglehold on the entire planet. They own us lock, stock and barrel; they pay us and keep us exactly where they can see us.)

In a related development sure to be swept under the rug as soon as the Obama Administration can make them an offer they can't refuse, San Francisco officials discovered that of the 400 foreclosures they audited recently, nearly all of them were fraudulent at worst, suspicious at best. The intrepid Gretchen Morgenson broke the story in today's New York Times. You can read it here. 

Donovan & Holder Share a Conspiratorial Chuckle At Our Expense

Bootlicking for Dollars

Enough with the Robin Hood shtick he's been forced to perform in Washington lately, co-opting the language of Occupy and presenting a lukewarm budget that pretends to take a little from the rich to give even less to the poor. It's time for President Obama to devote some attention to his neglected day job: crisscrossing the country in Air Force One to mingle with the fabulously wealthy at multimillion-dollar fundraisers, and do some old-fashioned political wheeling, dealing, and groveling.


Forget about the phony baloney nonsense of how Populist Obama is siding with the middle class against the rich. His real business is playing Silicon Valley off the movie industry, doing the bidding of Wall Street in private as he chides it in public, talking the 99% talk while walking the 1% walk.


Today he's off to Hollywood to placate pouty entertainment plutocrats like Senator-turned-lobbyist Christopher Dodd, who vowed last month to cut off the Obama cash because of the president's failure to support SOPA and PIPA.  If you were hoping to catch TV footage of the president crooning with the stars in the next few days, you're out of luck. All the events will be private, unless a millionaire Occupier manages to sneak in and get video.


And now that the paltry foreclosure fraud settlement is apparently a done deal, and Campaign Director Jim Messina has met with banksters to assure them that Obama has no beef with them, the president will go to four back-to-back Wall Street fundraisers in New York on March 1.  This is where it gets interesting.


It turns out that one of the $35,800-a-plate soirees will be hosted by regular Obama bundler Ralph Schlosstein, a hedge fund manager who is among a whole slew of financial overlords going public with opposition to the looming Volcker Rule. He is also among the money men whom Messina soothed last week, promising that the president will not be demonizing Wall Street in campaign speeches.


The Rule, which is set to go into effect in July, will ban proprietary trading by banks -- in other words, it will prevent them from trading with their own money rather than for clients. A centerpiece of the Dodd-Frank regulatory overhaul, it says that banks should not make risky wagers while the government guarantees their deposits. It's designed to prevent the kind of bubble which caused the Crash of 2008. Or the kind of unpunished theft allegedly committed by former Senator and Obama Bundler Jon Corzine. But since these kinds of bets are so lucrative for banks, they are howling at the prospect of their profits being reduced in the interest of honesty, fairness and the public good.


Regulatory agencies only have four months to further tweak the Volcker Rule here and there and everywhere. They are being beset from all sides as they decide to either water down an already watered-down bill, or stand firm against the banks. From the L.A. Times:

The passion on both sides of the issue — and the big money that is at stake — are evident in the 14,490 public comments that the SEC had received and posted on its website as of Tuesday. Thousands of those were from private individuals expressing their support for cracking down on Wall Street's risky trading practices.

For banks, the debate comes at a particularly sensitive moment. The last few months have been filled with news of layoffs and pay cuts on Wall Street as banks grapple with a raft of newly proposed regulations and continued economic turmoil in Europe.

The proposed Volcker rule puts a number of new limitations on the financial industry. Big banks would be able to own only small stakes in private equity and hedge funds and they would have to do away with any trading desks that trade solely for the profit of the bank.

Schlosstein has gone on TV to signal publicly what he will no doubt be whispering privately in the presidential ear as he tantalizingly waves his bundle of cash. 

"Its (the Volcker Rule's) intent is to reduce risk in commercial banking and investment banking,” Schlosstein said today (2/14) in a Bloomberg Television interview with Betty Liu. “But the line between proprietary trading and market-making is almost impossible to draw. You wind up with this incredibly complex regulation with incredibly complex enforcement, all of which will really increase costs for investors and for companies in the U.S.,” Schlosstein said. (waaaaah)

The United States Chamber of Commerce has also bundled up corporations to stand in solidarity with Wall Street to protest the Volcker Rule. It may have unintended consequences for profit-hoarding "job creators", they fear. Corporations are people, my friend, etc.

But others, such as pension fund managers, individual citizens and even a few bankers, say the Rule -- even in its current un-tweaked, pre-Schlosstein influenced state -- does not go nearly far enough in reining in the big banks. It is one more weak, and delayed, and meagerly-funded part of the already limp Dodd-Frank financial "reform" bill (yeah, the same Dodd to whom Obama must also now kowtow for even more cash). One former banker who disagrees with Obama's bundler buddy is:

John S. Reed, who ran Citigroup from 1984 to 2000 and has been an outspoken proponent of financial reform, cited the recent cases of MF Global and UBS in his comment letter to make his case for tougher regulation, writing, "When a firm is focused on market gain, it will employ every available device to achieve those gains -- including taking advantage of clients and putting the firm at risk."

In his own way, Reed was a victim of the deregulatory environment on Wall Street that the Volcker rule aims to rein in. He was ousted soon after Citigroup was created in the wake of the repeal of Glass-Steagall in 1999, allowing banking, securities and insurance firms to merge.

(See Reed's suggestions for improvement at the above link).


And this from Occupy the SEC, via Firedoglake.


Space is Limited, but the 1% Possibilities Are Endless 



Twisted Logic



Happy Valentines Day from Your Pretzel President (graphic by Kat Garcia)

I thought I had heard all the reasons why President Obama is being forced at gunpoint to embrace the Supreme Court Citizens United decision in order to fight nasty Republican dirt with clean Democratic dirt. But how wrong I was. The justifications for influence peddling and money-grubbing by the Obama re-election campaign are flying fast and furious.  George Bush choked on a pretzel; Barack Obama and his handlers are twisting themselves into one. It's the warm, soft, malleable kind that vendors sell on the street corners in winter.
 
Not only will Priorities USA  now accept unlimited cash for negative ads -- but Obama has given the go-ahead for members of his own cabinet to shill for him at SuperPac fundraisers. It is all perfectly legal, as long as they don't blatantly ask for money during their pay-to-play availabilities with wealthy lobbyists and CEOs. For example, when Energy Secretary Stephen Chu gives a speech in front of a group of oil tycoons about deepwater drilling safety at a SuperPac fund-raising event, he won't say a single word about campaign donations. This logic runs in tandem with the reasoning that it's okay for lobbyists to bundle campaign cash for the president as long as they are not registered lobbyists.


Chu and at least three other Cabinet officials are openly champing at the bit to get into the fund-raising that is not fund-raising sweepstakes. The reason?  They already have histories of being champion political bundlers. It might even be safe to say they got their jobs in large part because of the wads of cash they raised for their boss in his first campaign.


According to the Center for Public Integrity's  iWatch News, one such expert bundler is Education Secretary Arne Duncan, a fellow Chicago pol from the old days, who is anxiously awaiting invitations to speaking gigs. And Interior Secretary Ken Salazar is an enthusiastic natural, having raised over $13 million for his own Senate campaign. Then there are U.S. Trade Rep Ron Kirk and the hundred grand he bundled for Obama's first campaign, and Chu, who even before the SuperPac decision, has "mingled" among donors at various political soirees.


That does it for the Cabinet officials -- so far. According to CPI, Hillary Clinton and Leon Panetta will not be shilling for campaign cash, nor will Homeland Security Secretary Janet Napolitano and former bundler Susan Rice, who is now UN ambassador.


Politico is running a pretty hilarious piece today on the various criticisms and rationales from both the left and the right about the Obama cave on anonymous fundraising. The funniest conservative gripe comes from David Bossie, chairman of the Koch Brothers' astroturfing Americans for Prosperity. He so hates the Obama hypocrisy of deploring Citizens United only to then start PrioritiesUSA that he has produced a video funded by SuperPac money to condemn SuperPac money.


Besides the critics, there are also defenders from both the left and the right. Former Republican Congressman Philip English quotes Ralph Waldo Emerson in defending Obama: "A foolish consistency is the hobgoblin of little minds, adored by little statesmen and philosophers and divines", adding:

By robustly trolling for big money to fund the inevitable attack ads, the Obama campaign has demonstrated a predictable large-mindedness, free of hobgoblins. The only venue in which anyone should be shocked by this is Rick’s Place in Casablanca. One has to wonder - if a Republican incumbent displayed such ambidexterity, would the media be so placid?

Hmm. If I were more cynical, I'd say English is trolling for a team of rivals-type appointment in Obama's second term.


Then there are the usual Democratic apologists twisting themselves into knots:

We may not like the rules, but we didn't choose them. So as Democrats fight for campaign finance reform - which Republicans have repeatedly blocked - we will play by the rules as they are, not as we wish they were. -- Bill Burton, founder of Priorities USA.


Playing by the rules as they exist, the same rules that apply to everyone else, while they work to change those rules for everyone, is not hypocrisy. Hypocrisy is the Republican expectation that Democrats hold themselves to a stricter standard than their opponent, when it was Republicans who stopped those standards from being put in place. -- Rodell Molineau, president of American Bridge 21st Century.


Unsurprisingly, the same Republicans who falsely claim the president is an appeaser expect him to unilaterally disarm his campaign. Thankfully he is too smart for that. President Obama knows that to change elections you have to win elections. -- Christine Pelosi, Democratic activist and daughter of Minority Leader Nancy.


There is no hypocrisy in working to change a system while following its rules as long as they are in place. In politics, acting like you are in a perfect system while your enemies kill you amounts to stupidity not idealism. The hypocrisy here is among those who are criticizing Obama for doing what they do. Also, I think this is a non-issue with Americans in general. For them, the dysfunction of the entire political system is the issue. -- Theda Skocpol, Harvard professor.


Obama's decision to tacitly support the super PAC set up to benefit him was just an acknowledgment of reality. With potentially hundreds of millions flowing to its anti-Obama counterparts, the president really had no choice but to act.
Don't think that this decision will drive a single vote away from Obama in the fall, however. In 2008, remember, Obama spurned public financing after promising he would accept it, and no one cared - except for John McCain, who sputtered around impotently about what an outrage it supposedly was. All of this is inside baseball that doesn't impact the behavior of real voters, who cynically and correctly assume that candidates are going to raise as much as they can no matter how they do it. Obama made the right decision. -- Garry South, Democratic consultant.


If we are ever going to right this political ship it will be the Democrats who do it not the McConnells and Boehners. There is no point of acting like lambs to the slaughter, and sacrificing the presidency and seats in Congress, if our ultimate goal is to have the votes to change the system. Obama made the only call possible. --  Peter Fenn, Democratic media consultant.

Speaking of hilarity, I got an amusing email the other day from the Obama campaign. It gives instructions on how to slap down mean talk about the prez from my redneck friends and relatives. The Empire Strikes Back it is not, but there is more than a hint of Homeland Security-lite in what they are asking "supporters like me" to do. If I hear something, I should say something. There are even downloadable talking points for Obamabots to stash in their arsenals. Sign up now to be a worker bee for the Ministry of Truth Truth Team. Campaign operative Stephanie Cutter writes:

Comunicating about the President's record -- and that of our opponents -- is what I do full-time. But people don't just want to hear from campaign statements or ads -- they want to hear from the family and friends they trust.

The President needs folks on board to roll up their sleeves, stand with him, and get the truth out all over the country.

So the next time you hear Mitt Romney accusing the President of "crony capitalism" or someone asking, "What has President Obama really accomplished?" you'll know what to do.

Stephanie has no idea what I am capable of doing. For one thing, most of my conservative family members and friends already despise Romney and the crew of wingnuts. And defending Obama against crony capitalism charges? Jeffrey Immelt, Timmy Geithner, Larry Summers, to name just a few.


Happy Valentines Day, fellow Sardonickists!