Posts Tagged ‘Treasury Department’

Rebekah Rast

GAO: Taxpayer Dollars Used to Support the ‘Big Green’ Agenda

by Rebekah Rast

It is not uncommon to hear of lawsuits being filed against the Environmental Protection Agency (EPA).

Citizens and states might sue the EPA for overregulation of an industry that could lead to lost jobs and revenues.  Green groups might sue the EPA because they feel it hasn’t done enough to over-regulate businesses or to expand enforcement of current environmental laws.

But it is important to note that in many cases the EPA and Treasury Department are required to award attorney’s fees to those plaintiffs that successfully dispute the EPA.  And because the Justice Department is what defends the EPA in court cases, your tax dollars are what are used to pay the opposing sides’ attorneys.

Facts on just how much taxpayer money is spent on these environmental court cases and who benefits wasn’t well known until Senators Jim Inhofe, R-Okla., and David Vitter, R-La., and a report from the Government Accountability Office (GAO), shed some light on the subject.

The GAO report found that in addition to attorney’s fees awarded, the Justice Department spent at least $43 million in taxpayer dollars defending EPA in court from 1998 to 2010.  That doesn’t include the fact that Treasury paid about $14.2 million from fiscal year 2003 through 2010 and the EPA paid approximately $1.4 million from fiscal year 2006 through 2010.

Because most people don’t have millions of dollars on hand to sue the EPA if need be, these statutes were put into place so citizens and industries could afford to bring charges against the federal government.  However, less than 20 percent of awarded money has been given to private industries, citizens, state agencies and associations combined.  This begs the question, what were the largest beneficiaries of these payouts?

The three primary beneficiaries from 1998 to 2010 were: Sierra Club, Earthjustice and Natural Resources Defense Council (NRDC).  Total amounts these organizations received from all attorney fees paid to EPA litigants combined was at least 41 percent of the total payouts.  Earthjustice alone received 32 percent, as indicated by this report.

Go figure that the primary beneficiaries of statutes set to protect citizens and private industries would instead be awarded to environmental groups that want nothing more than to extend the power and grasp of the federal government’s EPA.

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Publius

August Surprise (Bribe): Massive Mortgage Bailout

by Publius

From James Pethokoukis at Reuters:

41ewxBCzp9L._SL500_AA300_Main Street may be about to get its own gigantic bailout. Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011.

The move, if it happens, would be a stunning political and economic bombshell less than 100 days before a midterm election in which Democrats are currently expected to suffer massive, if not historic losses. The key date to watch is August 17 when the Treasury Department holds a much-hyped meeting on the future of Fannie and Freddie. A few key points:

1) Republican leaders believe this is going to happen since GOPers and Democratic moderates in the Senate are unwilling to spend more taxpayer money on more stimulus. But such a housing plan would allow the White House to sidestep congressional objections and show voters it is doing something tangible about an economy that seems to be weakening.

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Liberty Chick

SEIU, HuffPo and Media Matters: Is an Unholy Alliance About to Unravel?

by Liberty Chick

If you haven’t read by now all the headlines on this story, you’ll want to start at the beginning and read the first post, SEIU Storms Private Residence, Terrorizes Teenage Son of Bank of America Exec.  Because as each day passes, new facts are popping up.  The story seemed so outrageous at first.  After all, the thought of over 500 screaming and chanting protesters surrounding a Bank of America lawyer’s private residence while the man’s teenage son, home alone, hid frightened inside a bathroom – it’s just so extreme, even by SEIU’s standards.

I knew something was up when the following day, Fortune magazine editor Nina Easton, a neighbor of the targeted residence, published an account of the incident and was almost immediately attacked by what seemed like practically a coordinated dogpile of writers from several specific sources.

In almost mirror fashion to the Town Hall events last August, when both the Huffington Post and Media Matters seemingly tried to cover up and dismiss the violent acts that SEIU committed against Kenneth Gladney, the same players were again out in full force.  As our Larry O’Connor wrote, both outlets behaved less like journalists and more like arms of the SEIU press office, dismissing SEIU’s bad behavior and attacking an innocent party with fabricated conflicts of interest as a method of distraction and intimidation.

payne-podesta

Bob Borosage, Erica Payne, and John Podesta

And now we learn this:  Erica Payne, the guest who was invited to appear Friday on Megyn Kelley’s Fox News show and proceeded to blame the Tea Parties for the behavior of SEIU?  She was co-founder of Democracy Alliance, the very organization that spawned and is a donor to Media Matters.  SEIU Secretary-Treasurer Anna Burger is also the Vice-Chair of its Board.

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Of Thee I Sing  1776

Financial Regulatory Reform: Missing an Obvious Target

by Of Thee I Sing 1776

Congress and the Administration have now picked their targets for regulatory reform following the long-inflating credit bubble that finally burst in 2008, the aftermath of which still suppresses economic activity here in America as well as the rest of the world.

freddie-mac-seo-suicide

Commercial banks, investment banks, financial products, derivatives, etc. . . .all were placed in the crosshairs of the big legislative and regulatory guns in Washington and, perhaps, well they should be. One trophy-size culprit, however, seems nowhere to be found on the target lists of the Congressional or Administration grenadiers. Fannie Mae, that publically traded, congressionally created, private enterprise (GSE or government-sponsored enterprise in beltway speak) seems to have totally escaped the purview of the government blame seekers.  Small wonder.

Of all of the bailouts handed over to private banks, investment firms, automobile companies and insurance companies, none have been more outrageous than the bailouts provided to Fannie Mae and it’s first cousin, Freddie Mac.  Although the government very belatedly seized these GSEs, taxpayer money continues to be provided to these hybrid public‑private creations right under our collective noses each and every day.  The Congressional pontificators have focused attention on every miscreant except the one they (or their predecessors) created and which they continue to feed.

Everyone agrees that the overheated housing market created a pricing bubble that was destined, like the San Andreas Fault or Eyjafjalljokull, the volcanic mountain in Iceland, to experience a major blow-up.

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John Berlau

Vitter’s Not-Everything’s-A-Bank Amendment Drives Progressives Nuts

by John Berlau

By now, readers of BigGovernment.com know that that the Democrats “Wall Street Bank” bill, which may get a final vote as early as this week, will reach far beyond Wall Street and ensnare businesses not typically thought of as “banks.” Stories here by this author and others have laid bare provisions of the Obama-Dodd-Frank-Everything’s-A-Bank bill that broadly define a “financial company” as any business “substantially engaged” or “significantly engaged”  in financial activities. And if your business happens to fall in such a category, it could be subject to a bailout “assessment” tax to bail out a high rolling financial firm, intrusive regulation by a banking agency or the new Bureau of Consumer Financial Protection, or even outright nationalization if the troika of the Federal Reserve, Treasury Secretary, and Federal Deposit Insurance Corporation decide your firm is a threat to “financial stability.”

david_vitter_horiz

Trouble is, though its audience is growing by leaps and bounds every day, this site is still at the point in which not every American relies on it for essential political info. And because Republicans have done a mediocre job of explaining how far this bill would reach, and the establishment media largely has no interest in explaining these facts, supporters of Senate Banking Committee Chairman Chris Dodd’s “Restoring American Financial Stability Act” have been able to get away with saying, “If you’re against this bill, you’re against reform of Wall Street.”

Or at least, that was the case until a couple days ago. That’s when Sen. David Vitter (R-La.) introduced an amendment with a straightforward message: A bill that claims to be about fostering transparency on Wall Street should itself be transparent in its objective and not sneak regulation on Main Street manufacturers and retailers.  Call it (and I just did) the Not-Everything’s-A-Bank Amendment.

Vitter has distinguished himself with his dedicated efforts in fighting for real financial reform.  He co-sponsored with self-proclaimed (but not necessarily sole) Senate socialist Bernie Sanders (I-Vt.)a bipartisan amendment similar to the measure in the House bill to have the Government Accountability Office audit the Federal Reserve. When Sanders and others went for the Obama administration”compromise” of a one-time audit of a limited part of the Fed’s operation, Vitter carried the flag of Fed transparency.

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Publius

Congress’ Amnesia on Fannie and Freddie

by Publius

From the great Peter Wallison in today’s Wall Street Journal:

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The Congressional Budget Office has estimated that, in the wake of the housing bubble and the unprecedented deflation in housing values that resulted, the government’s cost to bail out Fannie and Freddie will eventually reach $381 billion. That estimate may be too optimistic.

Last Christmas Eve, Treasury removed the $400 billion cap on what the government might be required to invest in these two GSEs in the future, and this may tell the real story about the cost to taxpayers. In typical Washington fashion, everyone has amnesia about how this disaster occurred.

The story is all too familiar. Politicians in positions of authority today had an opportunity to prevent this fiasco but did nothing. Now—in the name of the taxpayers—they want more power, but they have never been called to account for their earlier failings.

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Frank Gaffney

Federal Court: No, the Government May Not Prevent Further Discovery of the Takeover of AIG

by Frank Gaffney

This week we broke the story of possible criminal wrongdoing in the government takeover of insurance giant AIG. In the last several months, the US government has tried, unsuccessfully, to throw out plaintiff Kevin Murray’s case, alleging that the government’s takeover of AIG puts it in the position of supporting and promoting Islam and Shariah finance.

In the discovery process attorneys for Murray, David Yerushalmi and Robert Muise (of the Thomas More Law Center), discovered that the takeover itself may have been illegal, and have attempted to get Treasury Secretary under oath to try and untangle this mess. Again, the Fed and the Treasury Department tried to stonewall.

This past Tuesday, Federal district court judge Lawrence P. Zatkoff rejected the Treasury Department’s and the Fed’s effort to prevent any further discovery while the government attempts to convince the Sixth Circuit Court of Appeals to overrule Judge Zatkoff’s earlier ruling rejecting the government’s motion to dismiss the federal lawsuit challenging the government’s takeover of AIG on First Amendment-Establishment Clause grounds.

Follow the “extraordinary move to depose a sitting Treasury Secretary”

Tim Geithner: The “extraordinary move to depose a sitting Treasury Secretary”

The lawsuit, captioned Murray v. Geithner et al., was brought by attorneys David Yerushalmi and Robert Muise, representing the plaintiff, Kevin Murray, a tax payer and former combat Marine who served in Iraq. The federal lawsuit alleges that the U.S. government’s takeover and financial bailout of AIG was in violation of the Establishment Clause of the First Amendment.

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