When asked about the “Occupy Wall Street” movement in October, Massachusetts Senate candidate Elizabeth Warren praised it to the hilt. “I created much of the intellectual foundation for what they do,” she told the Daily Beast. Yet when pressed in November on the OWS adherents’ increasingly violent tactics, she told a Boston TV interviewer: “Everybody has to follow the law. There’s no exception on that.”

But Warren’s apparent disavowal of the tactics of OWS and like-minded community organizers may not be shared by Richard Cordray, President Obama’s nominee to head the Consumer Financial Protection Bureau that Warren designed. Cordray has long supported ESOP, formerly known as the East Side Organizing Project, an Ohio housing advocacy group that has distinguished itself by storming into banks and launching plastic “shark attacks” on the lawns of private homes. ESOP’s leaders brag about what they call their “organized hits” on banks and other targets, which have included the home of the late Congressman and Housing and Urban Development Secretary Jack Kemp.

As Ohio treasurer and attorney general, Cordray lobbied for state and federal funding for ESOP and publicly praised funders of the group as “the real heroes.” And in a highly unusual move for a nominee awaiting confirmation, Cordray returned to Ohio in October to be the keynote speaker at the group’s gala dinner.

Since his nomination in July to head the bureau created by the Dodd-Frank financial “reform” law, Republicans have held fast against confirmation. But largely, they haven’t made Cordray’s state record an issue. They have focused instead on structural defects in the agency’s design, such as the massive new powers the bureau will have to ban financial products it deems “abusive” and its lack of accountability to Congress.

These criticisms are valid, but they may not be enough to hold Senate Republicans together without criticism of the nominee’s merits. Just before Thanksgiving, Scott Brown (R-Mass.), facing a tough reelection challenge from Warren, became the first GOPer to commit to voting for Cordray. The Democrat-controlled Senate plans to hold a vote on his confirmation this week, possibly as early as Tuesday. Human Events‘ Neil McCabe reports that in addition to Maine Sens. Susan Collins and Olympia Snowe, other GOP targets for Cordray supporters include Alaska’s Lisa Murkowski, Tennessee’s Bob Corker, and Cordray’s home state Senator Rob Portman of Ohio (though Portman seemed to reaffirm his opposition in a statement to Human Events last week).

But Cordray’s support of ESOP needs further scrutiny, particularly since as head of the bureau, he will have the power to help funnel federal support to ESOP and like-minded community organizers with virtually no oversight by Congress. And a report by Bloomberg News suggests that Cordray specifically blessed ESOP’s “organized hits” on banks and homes.

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Yesterday, Scott Brown caved, and the Senate passed its “financial reform.” That story is at the top of every news web site.

But what the establishment media didn’t tell you – unless you waded through the details in a select few news articles or saw this fairly balanced short article in the Washington Post – is that Wednesday evening,  hours after the first cloture vote failed and hours after  I informed BigGovernment.com readers about an effort by Sen. David Vitter (R-La.), to narrow the scope of what I have been calling the Obama-Dodd-Frank-Everything’s A Bank Bill, Democrats blinked and Vitter’s amendment passed without objection by voice vote.

Vitter’s amendment to the so-called “Restoring American Financial Stability Act” gives a precise meaning to the term “financial company” – changing the definition from Dodd’s original language of “substantially engaged in activities in the United States that are financial in nature” to that of the much stricter “predominantly engaged.” And his amendment precisely defines “predominantly engaged” as a business that makes no less than 85 percent of its revenue from financial activities.

As a result of Vitter’s measure that passed during the brief 24-hour period of most of the GOP standing together in opposition (along with Democrats Maria Cantwell and Russ Feingold for their own reasons), a very important change was made.

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I’ve been joking recently that the political climate was moving into territory where it would be impossible for even the GOP to screw up the November elections. I was wrong. Tuesday’s special election to replace the deceased Rep. John Murtha, where a credible GOP candidate lost by almost ten points, proves that we should never underestimate the GOP’s ability to squander its advantages and snatch defeat from the jaws of victory.

First, lets dismiss with a few of the challenges the GOP faced in the special election. The district, Pennsylvania 12, is a gerrymandered mess, designed to elect a Democrat. There are twice as many registered Democrats in the district as Republicans. Although the Presidential election in 2008 was close, in prior years the Democrat candidate won the district in a walk.

The special election was scheduled on the same day as a hotly-contested Democrat primary, guaranteeing a boost in the party’s turnout. There was a gadfly “tea party” candidate auditioning for the role of spoiler and a somewhat complicated voting process where supporters of the GOP candidate, Tim Burns, had to vote twice; once in the GOP primary and again in the actual special election. And, the Democrat candidate had the full support of the left’s political machine and an army of supporters from Big Labor, in one of the few remaining districts where that matters.

All of these dynamics pointed to a close race. They do not, however, add up to the blowout suffered by Burns on Tuesday. Remember, Burns’ opponent, Mark Critz, was a former staffer for John Murtha. He actually campaigned that he was the economic development director for the former Congressman. He negotiated the earmark deals that cast an ethical cloud above the Congressman and filled a grand jury docket. He said he was a pro-life Democrat, as if that means anything in a post-Stupak world. Oh, and he said he opposed ObamaCare but wouldn’t vote to repeal it. It seems he was against it before he was for it.

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Conservative talk radio in Memphis is calling for the firing of the staff member of Sen. Bob Corker who demeaned and belittled Tea Party activists in the Volunteer State calling them “sad” and “creepy” when they visited the office protesting Corker’s support for establishing a permanent bailout fund for companies “too big to fail.”

Corker is leading the charge for a “bipartisan” deal on so-called financial reform legislation that will create bailouts as far as the eyes can see, create a new regulators for small businesses (that had nothing to do with creating the crisis) and empowering big labor with shareholder proxy provisions aimed at undermining private company policy decisions. The House passed version of the bill authorizes the Federal Reserve to spend up to $4 trillion for bailouts. The Senate version is a blank check.

Attitudes are set at the top of the organization.

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It’s not often the two Republican Senators from Maine safeguard the country from excessive government with more vigilance than a Republican Senator from Tennessee.  But on the issue of Financial Reform, Sen. Collins and Snowe have become champions for the taxpayers — holding the line against more bailouts and bureaucracy — while Sen. Bob Corker continues to push the country toward permanent bailouts and a Washington regulatory scheme “one like we have not seen before.”

Big Government readers are well aware of Corker’s repeated attempts to cut a deal with “Countrywide” Chris Dodd.  Despite signing a letter pledging to oppose the legislation, Corker is now taking to the airwaves denying the legislation contains a permanent bank bailout provision.

Neat trick Senator. Swear to your constituents that you oppose further bailouts and then push a bailout bill by simply saying it contains no bailouts.

Corker has become to Financial Reform what Sen. Lindsey Graham is to climate change legislation — a sucker.  And his words are being used by left-wing activists to deny there is a bailout in the legislation.

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Liberal pundit Michael Kinsley once defined a political gaffe as an instance of a politician accidentally telling the truth. House Financial Services Committee Chairman Barney Frank, D-Mass., recently made a gaffe that fits Kinsley’s definition to a tee.

In a debate with Ralph Nader on MSNBC’s “The Ed Show,” in which Nader was accusing Frank of being too timid on the financial regulation bill then moving through the House, Frank responded, “We are trying in every front to increase the role of government in the regulatory area.”  Conservative blogs took note of Frank’s use of the word “every front”, as did Rep. Paul Ryan (R-Wis.), and earned a brusque “tsk- tsk” from The New Republic’s Jonathan Chait.

This is an example of “the conservative misinformation feedback loop in action,” Chait exclaimed. Frank was only talking about banking, Chait claimed, and “not confessing to a plan to expand government in every area.”

Actually, in prefacing his comments, Frank moved the topic from Nader’s point about derivatives to the broader issue of how “the right wing took control of government and ruined it” and how it is supposedly benefitting from its “own incompetence.”  But if one still doesn’t want to take this as Frank’s confession of wanting to increase government intervention “in every front,” one need look no further than the bill by Frank that passed the House in December and Chris Dodd’s Senate “financial reform” bill that Democrats are trying to ram through the Senate.

In the debate, Democrats never tire of accusing Republicans of siding with “Wall Street banks.”  But last week Republicans made headway when Senate Minority Leader Mitch McConnell pointed out that the bill $50 billion resolution fund would institutionalize bailouts for big banks, whether these banks failed themselves or acted as creditors to too-big-to-fail institutions.  Even an editorial in the Washington Post stated that “Mr. McConnell is partly right” and that “creditors might fund systemically important firms on artificially advantageous terms, thus enabling them to grow bigger and riskier.”

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Despite efforts by some weak sisters like Sen. “Bailout” Bob Corker (R-TN) to cut a deal with “Countrywide” Chris Dodd (D-CT) on legislation to create a Blank Check Bailout Bill and lots of loud speculation from Senate Democrats about peeling off a Republican, Senate Republicans are currently holding firm against intimidation tactics to ram the bill through the Senate a la Health Care Reform.

Sources on Capitol Hill report that Sen. Shelby recently briefed Senate Republicans about the bill and got unanimous support for his efforts to block the Democrats latest government takeover scheme.  Unanimous support means that even the Senators from Maine — Susan Collins and Olympia Snowe are holding the line against future bailouts despite ongoing White House efforts to jam the bill. According to our sources, Collins even went so far as to make an explicit commitment to Shelby to oppose the bill saying she has many problems with it.

And with good reason too. As readers recall, the so-called “Financial Reform” legislation contains a number of key provisions – none of them good–that creates more bureaucracies, more fees and taxes, more Washington red tape and makes bailouts the permanent policy of the US Government.  But while offering permanent bailouts and a government takeover of the rest of our economy the legislation of course does nothing to address the root causes of the crisis including Fannie Mae, Freddie Mac and the consumer lending laws that pushed mortgages to people who could never afford to pay them back.

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It’s time for your weekly dose of Coffee and Markets, featuring The New Ledger’s Francis Cianfrocca, a podcast brought to you by the fine folks at Andrew Breitbart’s BigGovernment.com and LibertyPundits.com, your home for conservative podcasts. In this week’s edition, we’ll talk about the fallout from a failed attempt by Senators Dodd and Corker to make new financial regulations bipartisan, the latest activity on the bond markets, and what’s next for Obamacare.

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You can subscribe to the podcast by following the links above, and if you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

TNL: Obamacare’s Two Americas
Frum: Will Health Reform Cause the Next Bailout?
The Hill: No Votes on HCR Pile Up
HCN: Democrats Consider Drastic Moves to Pass Health Care Bill
T-Shirt: Lobby the Rahm Emanuel Way

Grassroots conservatives were rightly up in arms over Senator Corker’s game of footsie with far left Democrat Chris Dodd. The two worked together on President Obama’s effort to impose a massive new regulatory scheme on the American economy. Dodd, of course, is one of the architects of the current financial crisis. His decades long support of ACORN, Fannie Mae, Freddie Mac and the Community Reinvestment Act should have disqualified him from these negotiations in the first place.

The word from the halls of the Capital last week was that Corker was still trying to cut a deal with democrats… a bad deal.

But, it looks like Corker bailed after the constant pressure from conservatives this past week…
Senator Bob Corker (R-TN) just backed out of a deal with Dodd and democrats to establish a new federal bureaucracy to regulate the financial industry.
Congress Daily reported:

Senate Banking Chairman Christopher Dodd said today he will unveil legislation to revamp the nation’s financial regulatory system without the support of Sen. Bob Corker, R-Tenn., with whom he had been working to strike a bipartisan deal.

“Over the last few months, Banking Committee members have worked together to try and produce a consensus package. Together we have made significant progress and resolved a many of the items, but a few outstanding issues remain,” Dodd said in a statement.

Dodd said he intends to unveil the bill Monday and hold a markup during the week of March 22 to move the bill out of committee.

“I have been fortunate to have a strong partner in Senator Corker, and my new proposal will reflect his input and the good work done by many of our colleagues as well,” Dodd added. “Our talks will continue, and it is still our hope to come to agreement on a strong bill all of the Senate can be proud to support very soon.”

Corker is scheduled to hold a news conference at 11 a.m. to give his version of the breakdown of the talks.

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While most of the public is consumed by the health care-death-march spectacle, Senators Bob Corker and Chris Dodd are making serious progress on the Senate’s “financial services reform” legislation. The legislation was dead just a couple weeks ago, but Sen. Corker thought he could snag a seat at the grown-up table and stepped forward to ‘cut a deal.’

As is the new DC operating procedure for major legislation, there are almost no firm details on the current language. We know there will be a large new federal bureaucracy, somewhere within government, to provide “consumer protection” for financial products. We know there will be a $50 billion tax on banking customers to provide a permanent bailout fund, or as Sen. Corker would describe it, a “wind-down” fund. Unfortunately, we also know that the bill will do nothing to reform Fannie Mae or Freddie Mac, who continue to drain billions from the U.S. Treasury.

We’re told the Corker-Dodd Bailout Bill is a necessary response to the financial melt-down triggered by the collapse of the housing bubble. But, if it doesn’t take even small steps to reform Fannie and Freddie, then, simply, it isn’t a serious proposal. Its like rebuilding the porch on a house, while ignoring it’s cracked foundation.

Washington politicians would rather ignore this, but the housing bubble was the result of very explicit government policy. Throughout the 90’s and early 2000’s, officials from both parties became addicted to forever pushing homeownership rates higher than the laws of economics would otherwise allow.

If you want to identify the roots of the homeownership-cult among elected officials, fire-up the way-back machine and check out a little report issued by the Federal Reserve Bank of Boston in the early 90’s. Under the leadership of Richard Syron, then-President of the Boston Fed (more on him later), the report was the result of discussion among the bank’s staff and the usual collection of academics and professional activists. It was to make recommendations to the nation’s bankers on addressing alleged discrimination in mortgage lending.

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Capitol Confidential and Jim Hoft have done an excellent job laying out concerns with the potential “compromise” bill that comes out of Sen. Bob Corker’s negotiations with Chris Dodd.  But when it comes to the destructive provisions that could come out of a Dodd-Corker deal, they may have just scratched the surface.

In addition to the troubling new powers for a new nanny-state consumer agency and possibly the Federal Reserve added to the prospect of billions more in bailouts for reckless financial firm, the bill may also contain the sneaky  “proxy access” power grab for unions, radical environmentalists, and other groups on the Left. This rule, inspired by Saul Alinsky’s Rules for Radicals, is contained in Dodd’s “discussion draft” bill from late last year.

As I detailed in BigGovernment last week, “proxy access would federalize and override decades of state law governing the structure of corporations and force publicly-traded companies to put shareholders’ nominees for a board of directors on a company’s proxy ballot along with the firm’s own nominees for those positions.” Many shareholder groups that are pushing this are union pension funds, the radical Tides Foundation, and other progressive groups — from animal rights to anti-Israel — who place their own political agenda items at the expense of ordinary shareholders.

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Friday night on National Public Radio, a fitting place to announce an unprecedented growth in federal power, Sen. Chris Dodd praised his partner in crime Sen. Bob Corker for working together to create an “independent, autonomous, rule- writing entity, unlike anything we’ve ever had before.”  That is exactly why Tea Party activists from across the Volunteer State gathered in front of Corker’s office this past week to protest his back room dealmaking.

Why would  Corker ignore his constituents and abandon all conservative principles to work for legislation that earns him praise from Chris Dodd of all people?  Here’s why.

The big banks and Wall Street firms support the President’s Financial Reform package.  The House passed bill contains the mother of all bailouts — a $4 trillion authorization for the Federal Reserve to continue to bailout firms for decades to come.  In fact, as conservatives in the House reminded us when the Obama/Frank bill was on the floor, this bill makes bailouts the permanent policy of the US government.  And who gets those bailouts?  The same banks and firms that support the bill.  And who does Wall Street rain campaign contributions on?  None other than Bailout Bob Corker.

Corker has raised over $3 million from Wall Street and related firms since being elected to the Senate.  That’s a lot for a freshman Senator.  It seems like Wall Street is finally getting a good return on their investment.

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Today, in 1817, the New York Stock Exchange was founded. In its life, it became the financial capital of the world. Senators Chris Dodd and Bob Corker are now negotiating to move that title overseas.

Let’s be clear, the creation of a federal Consumer Financial Protection Agency (CFPA) is a liberal’s dream.  The agency would have the power to regulate businesses of any size. The House passed legislation, authored by Barney Frank, would as Rep Jeb Hensarling (R-Texas) put it in remarks before the House Financial Services Committee “create a brand new, large draconian federal agency with new sweeping powers.”

The bill came to the Senate where Senator Shelby stood strong on principle and won. Negotiations broke down and the Democrats’ big government dream was all but dead. No new agency and (on this issue at least) no new vast government powers.

Then Sen. Corker entered the fray and took it upon himself to negotiate a deal to revive the CFPA with the master of the financial crisis Sen. Dodd.

Before Corker got started, Shelby spokesperson Jonathan Graffeo warned that “Republicans on the committee have several principles upon which they’ve tried to negotiate with Dodd, to no avail” and that “If (Corker) adheres to those principles, he will likely find himself at an impasse as well.”

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Do Republicans Not Get It? Did they not pay attention to the thousands of tea parties this past year? Did they not see the hundreds of thousands of tea party protesters across the nation? Did they miss the million protesters who marched down the streets of Washington DC on September 12th?

(Photo via Instapundit and Mary Katharine Ham)

Are the Republicans really that blind? Do they Not Care? Even awful Speaker Pelosi is warming up to the Nazis tea party protesters.

After all of the posturing and preening and shouting and yelling and marching and tea party protesting, America is about to get the whole Democrat agenda shoved down our collective throat. Barack Obama announced today that Democrats are going to use reconciliation to jam Obamacare through Congress and essentially nationalize one-sixth of the US economy. And now, Republicans are about to offer them the rest of the American economy on a silver platter thanks to Senator Bob Corker. Congress is currently working to create a whole new consumer protection division within the Federal Reserve. This new division will give the Fed more power and focus on consumer protection. And, a Republican, Bob Corker, is for some reason leading the charge to create this whole new bureaucracy. The Wall Street Journal reported:

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Sen. Bob Corker is close to cutting a deal with Sen, Chris Dodd to re-regulate the 5/6ths of the economy that isn’t touched by Obama Care. Whiskey, Tango, Foxtrot. (Perhaps this is related to the over $3 million Corker has collected from Big Wall Street Banks. Just saying…) His office number is 202-224-3344.

While the media and most of the public are consumed by the health care death march, the Senate is deep in negotiations to pass a sweeping re-regulation of the financial sector. As the public knows, ObamaCare is an attempt to regulate 1/6th of the US economy. The financial ‘reform’ proposal, though, will impact the other 5/6ths of the economy. In many respects, the financial services ‘reform’ is much more damaging to the economy and our future competitiveness. Worse, its passage is being aided by Bob Corker.

Sen. Bob Corker (R-TN) has snatched defeat from the jaws of victory with his complete capitulation and total surrender on the Financial Services bill.  The bill, passed by the House with a $4 trillion bailout provision, making bailouts the permanent policy of the United States government, was on it’s last legs until Corker came to the rescue.  Now the Washington Post and other are reporting that Corker and ethically-challenged, retiring Sen. Chris Dodd (D-CT) are on the verge of a deal to breathe life back into the regulatory and bailout scheme.

Let’s be clear – the President and the hard left want this bill. David Reilly of Bloomberg described the measure as Barney Frank’s $4 trillion gift to the banks. Reilly wrote:

Here are some of the nuggets I gleaned from days spent reading Frank’s handiwork:

– For all its heft, the bill doesn’t once mention the words “too-big-to-fail,” the main issue confronting the financial system. Admitting you have a problem, as any 12- stepper knows, is the crucial first step toward recovery.

– Instead, it supports the biggest banks. It authorizes Federal Reserve banks to provide as much as $4 trillion in emergency funding the next time Wall Street crashes. So much for “no-more-bailouts” talk. That is more than twice what the Fed pumped into markets this time around. The size of the fund makes the bribes in the Senate’s health-care bill look minuscule.

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What would Saul Alinksy do?

In the wake of defeats for the Obama administration last month both with Scott Brown’s stunning Senate victory in the bluest of blue states and the Supreme Court Citizens United decision that will let thousands of groups speak more freely about candidates positions’ in the 2010 elections and beyond, that’s the question President Obama and his allies are probably asking. It’s also the question that proponents of limited, constitutional government and free enterprise must be asking in order to anticipate the organized Left’s next moves.

Alinksy was the father of left-wing community organizing. He wrote the book Rules for Radicals and other primers, which explained to would-be leftist organizers how to “search out controversy” and “fan the latent hostilities.” Seeing the world as a never-ending conflict between the “haves and have-nots,” Alinsky wrote In Rules for Radicals that “in war, the end justifies almost any means.”  One community organizer who took Alinsky’s words to heart was a young Barack Obama, who worked for an offshoot of Alinsky’s network of organizations in Chicago in the 1980s. Throughout his career, according to the Washington Post, Obama has “embraced many of Alinsky’s tactics.”

And one tactic in Alinsky’s arsenal dovetails almost perfectly with Obama’s new focus on so-called “financial reform” and his bashing of Wall Street to score political points. One of Alinsky’s most important rules for radicals was that “you do what you can with what you have and clothe it with moral garments.” In this case, the “moral garment” is the supposed interest of shareholders.

Obama and Democrats are pushing legislation they claim would empower average investors against powerful corporate executives. They propose requiring a shareholder vote on everything from CEO pay to – in a move to limit the freedoms in the Citizens United decision — companies’ weighing in on political candidates.

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