Jacob Lew Case Certainly Looks Like a Story of Washington Corruption
by Dan MitchellThe “appearance of impropriety” is often considered the Washington standard for corruption and misbehavior. With that in mind, alarm bells began ringing in my head when I read this Washington Times report about Jacob Lew, Obama’s nominee to head the Office of Management and Budget.
Why did Citigroup decide to hire a career DC political operator for $1.1 million? As a former political aide, lobbyist, lawyer, and political appointee, what particular talents did he have to justify that salary to manage an investment division? Did the presence of Lew (as well as other Washington insiders such as Robert Rubin) help Citigroup get a big bucket of money from taxpayers as part of the TARP bailout? Did Lew’s big $900K in 2009 have anything to do with the money the bank got from taxpayers?
Is it a bit suspicious that he received his big windfall bonus four days after filing a financial disclosure? Read this blurb from the Washington Times and see if you can draw any conclusion other than this was a typical example of the sleazy relationship of big government and big business.
President Obama’s choice to be the government’s chief budget officer received a bonus of more than $900,000 from Citigroup Inc. last year — after the Wall Street firm for which he worked received a massive taxpayer bailout. The money was paid to Jacob Lew in January 2009, about two weeks before he joined the State Department as deputy secretary of state, according to a newly filed ethics form. The payout came on top of the already hefty $1.1 million Citigroup compensation package for 2008 that he reported last year.
Administration officials and members of Congress last year expressed outrage that executives at other bailed-out firms, such as American International Group Inc., awarded bonuses to top executives. State Department officials at the time steadfastly refused to say if Mr. Lew received a post-bailout bonus from Citigroup in response to inquiries from The Washington Times. But Mr. Lew’s latest financial disclosure report, provided by the State Department on Wednesday, makes clear that he did receive a significant windfall. …The records show that Mr. Lew received the $944,578 payment four days after he filed his 2008 ethics disclosure.
Lest anyone think I’m being partisan, let’s now look at another story featuring Senator Richard Shelby. The Alabama Republican and his former aides have a nice incestuous relationship that means more campaign cash for him, lucrative fees for them, and lots of our tax dollars being diverted to moochers such as the state’s university system. Here are some of the sordid details.
Since 2008, Alabama Sen. Richard Shelby has steered more than $250 million in earmarks to beneficiaries whose lobbyists used to work in his Senate office — including millions for Alabama universities represented by a former top staffer. In a mix of revolving-door and campaign finance politics, the same organizations that have enjoyed Shelby’s earmarks have seen their lobbyists and employees contribute nearly $1 million to Shelby’s campaign and political action committee since 1999, according to federal records. …Shelby’s earmarking doesn’t appear to run afoul of Senate rules or federal ethics laws. But critics said his tactics are part of a Washington culture in which lawmakers direct money back home to narrow interests, which, in turn, hire well-connected lobbyists — often former congressional aides — who enjoy special access on Capitol Hill.
Some people think the answer to these stories is more ethics laws, corruption laws, and campaign-finance laws, but that’s like putting a band-aid on a compound fracture. Besides, it is quite likely that no laws were broken, either by Lew, Citigroup, Shelby, or his former aides. This is just the way Washington works, and the beneficiaries are the insiders who know how to milk the system. The only way to actually reduce both legal and illegal corruption in Washington is to shrink the size of government. The sleaze will not go away until politicians have less ability to steer our money to special interests – whether they are Wall Street Banks or Alabama universities. This video elaborates.
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54 Comments
That was some interesting information regarding Senator Shelby.
So who inside our "government" allowed 'material information' on an Oracle lawsuit to be released about 10 minutes before the market closed today?
Insider dealing and insider trading is still illegal. Check out the option activity in ORCL today. It's one thing to screw the odd lot investor by using insider information but it will happen. Releasing 'material information' mid day is a criminal offense for company insiders.
DOJ and SEC are now in collusion? The corruption from this Administration used to be sickening. What do we call it now? A real live walking and talking RACKET.
"Shrinking" the size of government is important, but some agencies need more than shrinking, they need to be ELIMINATED. I'll let everyone else list the federal government agencies that we could do without.
I always appreciate your significancy, Mr. Mitchell.
It really is as simple as having a smaller government entity, which in turn would lead to less sleaze influencing opinions for those that are duly elected to represent the "folks back home".
Show me where the plug is, and I will be more than happy to drain the swamp! But it's a big plug and I certainly will need help…
Everyone that works for the govt, all the way down to the janitors needs to be fired and replaced by the people, for the people and if we the people don't like the replacements, we kick their asses out also!
Senators have been measured by the earmarks they delivered for a long time. Shelby is part of the culture that used earmarks as a measure of success. That culture must change. Would love to see the measure of success changed to the dollar amount of entrenched bureaucracy that has been let go.
Well lets start with defunding USAID, DOE, and all those agencies BO has initiated. And let's cut funding for the stateless department in half. That should save some 20 billion right away.
This is what the Dems and Obama are afraid of once the GOP takes back the House and Senate. There will be tons of investigations. If the GOP has the balls to do it because there are members of the GOP that are for earmarks too.
Did you notice that the SEC is now exempt from FOIA rules?
Time for a Citizens Tribunal, oh that would be November.
The GOP has always been the party of bygones. They are always so excited to actually get elected
It must be nice to be an elitist in Washington. That way us surfs can pay over 50% of our hard earned money in taxes and "fees" to support them. Just think God only wanted 10% but "no" we had to have a king.
I am blinded by all this Transparency!
His pay package is probably boomerang money and will probably end up in Obama's warchest.
If nothing else, it's "ruling class crony capitalism" at it's worst.
Elitists like this go around saying, "what recession?"
This kind of nonsense needs to be looked at seriously by the next Congress.
It's the only way to restore confidence in the system…
Chucky Cheese Schumer?
Nothing to see here folks…
Move Along……..
Not to change the topic, but does anyone know the real info on Charlie Rangel?
There was a thread here earlier, that said he had cut a deal.
I was just over at Drudge, and they are reporting NO Deal, and Ol Charlie is headed to a trial. I want to see the trial! http://news.yahoo.com/s/ap/20100729/ap_on_go_co/u...
Don't worry Speaker Pelosi, this November "We the People" will drain the swamp for you.
A genuine leader is not a searcher for consensus but a molder of consensus.
Martin Luther King, Jr.
Remember November,
http://remembernovember.com/
I heard he will be brought up on 13 counts earlier. But he will be let off easy and back raising your taxes next year I am sure.
These people must begin to fear us. Period.
Obama's SEC gets free pass
It's interesting that the left is largely silent on the blatant power grabs by this administration – such as the latest with the SEC who are now exempt from Freedom of Information Act requests. Everyone should be up in arms because no matter who is in control, government and power has proven to be a horrible combination.
http://www.youtube.com/watch?v=AP-IM7maxbI&fe...
Government at every level is simply too large. It is too difficult to keep an eye on them. It has gotten completely out of hand.
In "Lew" of everybody else
He fits right in
" It's interesting that the left is largely silent on the blatant power grabs by this administration "
Just goes to show you what the left really wants. Can you spell "Dictator."
Shelby the screwball has a long history of corruption. Thats why he is one of the "Good Old Boys".
Link please? I believe you, of course, but I would like to read more about it…
They’re just public servants, trying to serve the people…barf!
Washington is rotten to it’s core. We need to fire’em all, abolish K-Street lobbying firms, and jail half of Wall Street, statist bastards.
The larger something is the more likelyhood it has to engage into corruption. The yardstick for ethics should be,…"if you're not prepared to have your actions smeared on the front page of USA Today, it's probably unethical" But then again if you're a liberal it probably won't matter anyway.
Shame on anyone gaming the system for personal gain Democrate, Republican, Independant – if you're a scummy b-tard better find another line of work other than politics. With the downfall of the MSM we all realize we have to find the truth ourselves (and we have little cameras easily missed but take wonderful footage of your behavior to put on you tube)
Be seeing you!
We just have to vote for the ones that do have the cajones to take these crazies on…………..there are many good repubs out there with great ideas……………just look at Kasich in Ohio, will win by a landslide………….I can't wait until November! You need to speak with all the young people you can, show them some facts, be patient, because they have not been taught our true history…………..my kids (22 24) have friends that I have really got to them, thinks they can't believe really did happen back in the day……………….we have to teach them, they need to know the truth
The #1 GOP earmarker I believe…
Yes it has, and only we the people can change it. Which we will do in November, then hopefully things can get back to normal. obama's trying to push to much thru each day it gives me a headache. Just remember, some of the racist deals they're throwing at us are just a front to what is really happening. Pay attention and vote!
http://www.foxbusiness.com/markets/2010/07/28/sec...
This was ALL OVER the business news channels for the last two days. it is a big story.
Just when Fannie Mae and Freddie Mac have filed to be de-listed.
I couldn't have said it better myself!
GF,
It is all over the FOX that they are ignoring an FOIA request because the new financial reform bill exempts them!
That is "Transparency" ObaMao style!
Fascism tends to include a belief in the supremacy of one national or ethnic group, a contempt for democracy, an insistence on obedience to a powerful leader, and a strong demagogic approach.
Sound like anybody you know? O
Back in 2008 when they were passing TARP 1, Senator Shelby and Senator Jim Bunning were vocal against it. They garnered respect from me. I made numerous calls to both their offices, and wrote various letters. It is always sobering to find out that they are not as they appear.
That is the ONLY way We the People will effectuate change.
It's a good thing Jacob Lew got $900K or else the economy would really be in trouble…
Must have been their "broken clock" moment…
I have been forgiving of some RINO's in the past, but given the opportunity to vote, I will do so forcefully going forward.
No more progressives in either party, and no more RINO's…
Eegads! Sorry, no cable since '94 and no TV since 6/9/10. Not my thing. Guess I missed it or was too distracted to have it click (it happens). This cannot be legal.
If you or anyone else ever wonders about my deep skepticism of (near) all things government, this is why. The rules should apply equally to all, across the board -the only exception being matters of true National Security. This is CYA and "protection money" at work. This nation started out with a relatively level "playing field". With all of the governmental shenanigans going on, it resembles a mine field: Careful where you step, unless you can "buy" a "map". Goin' outside to enjoy the weather now, too nice a night to explode…
Thanks for the info…
CL beat you by 1 minute, but thanks anyway…
Thanks.
I always enjoy your input.
I haven't been around much lately.
Have had my butt planted in a tractor seat, but I stay semi connected with Sirrius Radio and listen to the Business news. It sure is a scam, isn't it?
The Government does wrong, and then passes laws exempting themselves from wrongdoing.
That's the problem, once they get in they turn to corrupt mushheads. We need to stick to our guns. If they don't fix these problems, they don't see a reelection.
Even with a conviction democrats are stupid enough to reelect him.
So, two things. Either the left is too stupid to know that republicans will eventually regain power. Or, they hope Obama will go Saddam Hussein and put only himself on the 2012 ballot.
YOU enjoy MY input? I am blushing a bit here (if that ain't too girlie)… I am (obviously) a well read Ayn Rand fan. Moochers, looters and the power of pull ("favors") to obtain unearned wealth and advantage. Disgusting to the core… All of what we see is a mere collection of symptoms. The disease is a loss of philosophy and perspective. Remember Horatio Alger Jr.? Where has the character gone? I EARN everything I have. I take no "free" offerings unless I have reason to believe it is an honest exchange of persuasion to engage in commerce (except cheese samples at the grocery store -those are fair game). Diggin' the CL, and enjoyin' the occasional "grenade". Catch ya around…
Yes we can. We will by watching the rise of the people of this country. They have taken US from a ditch to a cliff. Remember who we are as a country, and a people. It will be painful, but we will over come. Our founders faced the most powerful nation in the world at the time, and they found and built this nation.
In all honesty I can't fault Citigroup for paying Lew. If I was a Citigroup stockholder I would appreciate having someone with Lews credentials bribing Congressman for special privelages. That's the pricetag when you have big government. Mitchell is right; ethics laws, corruption laws, and campaign-finance laws don't work. The answer is smaller government. Less government authority less influence to solicit. Simple mathematical equation……………
what is it with these government schmucks and the awful toupees?!?
My granddaughter's name is Reagan. note the Rea as in Ronald Reagan.
I'm RINO BECAUSE of Republicans like Shelby. He's in the top 2, I believe, on the Senate Banking committee for lobby money.
But the art Shelby has mastered is compromising his own integrity by voting for Bills he would otherwise vote against, if the vote were at all close. Example, the Brown-Kaufman amendment to break up the six biggest banks. I welcome anybody here to try and go find a clip, or release, as to why he voted 'Yea' on that amendment. It goes against his monopolist brain. He was one of 3 Republicans making up the 33 'Yes' votes. Democrats from big bank and finance states like MA, NY, CA, DE and SD voted No. Go figure on that one, too.
Whether to break up the banks is the heavy stuff, folks. The government influence won't go away, when their main competition is what they can put over on you and me.
Fascism?
The SEC/FOIA exemption already exists, as the guy on FNC said. Issa is trying to make a big deal out of a "Study". All they're going to do is see if public access to SEC enforcement action information should continue to be restricted in cases where the FOIA exemption protects a whistleblower.
Its all here: http://tinyurl.com/24jk8xn You can download the 2300 page pdf and word-search "freedom", or "FOIA", or anything else for yourselves. Its on page 1287. Issa was close with section "91, 92". Its section 922.
Fox was correct about nothing changing, but they achieved their main objective of raising suspicion of Financial Reform. That works for people who can't, or won't, read the Bill.
That's a lie. Somebody could make a career out of debunking Fox, Bigs and Issa's claims. I wish I had more time, so I'll cut and paste:
The SEC/FOIA exemption already exists, as the guy on FNC said. Issa is trying to make a big deal out of a "Study". All they're going to do is see if public access to SEC enforcement action information should continue to be restricted in cases where the FOIA exemption protects a whistleblower.
Its all here: http://tinyurl.com/24jk8xn You can download the 2300 page pdf and word-search "freedom", or "FOIA", or anything else for yourselves. Its on page 1287. Issa was close with section "91, 92". Its section 922.
Fox was correct about nothing changing, but they achieved their main objective of raising suspicion of Financial Reform. That works for people who can't, or won't, read the Bill.
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