NEWS:
Collapse of Lehman Brothers: What Did Geithner Know and When Did He Know It? Senate Rejects Equal Sentences for Crack and Powder Cocaine House Impeaches Judge Thomas Porteous…Only 15th in 207 Years Taxpayers Lose as Treasury Helps Midwest Banc Holdings Legalize the Selling of Bone Marrow: Steve Chapman Pentagon Propaganda Machine Rolls on in Afghanistan Federal Court Rules “In God We Trust” and “Under God” are Not Religious Expressions Record-Setting Number of Americans Pay No Income Tax German Intelligence Agency Fights to Keep Nazi Files Secret after 50 Years Rising Seed Prices Pressure Farmers, Draw Attention of Obama Administration Fighter Jet Costs Jump 50%, Triggering Congressional Review and Lockheed Defense Ohio Keeps Prisoner Alive So That He Can Be Executed Federal IT Purchasers Win Worst Open Government Award for Not Saving E-Mails Montgomery and Stockton Tie for Most Obese Cities, Colorado Dominates Least Obese Afghan District Governor Pleads for U.S. Troops U.S. Budget Deficit Grows $1 Million Every 11 Seconds 33 Government Auto Regulators Now Work for Auto Industry House Democrats Ban Earmarks to Corporations State Department Tour for Pakistan Legislators Falls Apart over Body Scanning Camp Lejeune Contaminated Water Investigation Heats Up The Payday Lender Senator: Corker of Tennessee Pfizer CEO Gets 12.5% Raise for Successful Lobbying Taxpayers Footing the Bill for Breast Augmentations Jury Orders Hog Farm to Pay Locals $11 Million for Foul Odors Gospel Label Delayed Album Release Because God Did Not Approve Army vs. Lockheed Martin in Battle to Cancel Missile Defense System 16 Midwest Cities Sue Maker of Weed-Killer Found in Tap Water House Ethics Probe Avoided Interviewing Members of Congress in PMA Case New York City Police Accused of Arrest Quotas and Doctoring Figures Brazil, with Rare WTO Approval, Threatens U.S. with Trade Sanctions U.S.-Supported Afghan Chief Served Prison Time in Germany Sentencing Reform Reduces Prison Population without Increasing Crime Online Security Questions Need Improving First Commercial Brain-Operated Computer Detroit Settles Perfume Allergy Case for $100,000 Judge Allows Torture Lawsuit against Donald Rumsfeld to Proceed DC First City to Distribute Free Female Condoms U.S. gave $107 Billion in Contracts to Companies Doing Business with Iran Defense Contractor Agrees to Pay $400 Million Criminal Fine Veterans’ Courts May Go National U.S. Government to Experiment with New Definition of Poverty Obama Administration Withdraws Plans for Yucca Mountain Nuclear Dump Homeland Security Not Following Rules in Awarding Contracts Swiss Vote on Providing Lawyers for Animals Federal Reserve Proposes Protecting Credit Card Users from Excessive Fees and Penalties Journalist Attacked by Assassins While Speaking on Live Radio Justice Dept. Investigates Voting Machine Merger for Possible Anti-Trust Violation Civilians Account for One-Third of Drone Attack Deaths in Pakistan Democratic Senators Move to End Ban on Gay Blood Donations Venus de Milo Snow Sculpture Forced to Wear Bikini in New Jersey IRS Holding $1.3 Billion in Unclaimed Refunds 8 Senators Who Voted Against Jobless Benefits Come from States with High Unemployment Accused Death Squad Leader on Verge of Election to Iraqi Parliament Cost of Foodborne Illnesses Estimated at $152 Billion a Year Israel Calls Off West Bank Raid after Leak on Facebook Obama Wants to Close International Labor Statistics Office Families of Murdered U.S. Missionaries Sue Chiquita for Supporting Terrorists Pentagon Fines KBR…Then Gives it a $2.8 Billion Contract Glaxo Pays Out $1 Billion in Birth Defect Cases with 600 Lawsuits to Go Army Considers Need for Better Bullets and Rifles in Afghanistan VA Agrees to Review Gulf War Illness Claims Lobbyists Treated as Analysts on TV News New Orleans Police Officer Pleads Guilty in Post-Katrina Killing Cover-Up Exotic Bank Loans Strip States and Cities of Tens of Billions of Dollars Court Rules Zombies Allowed to Roam the Streets New Military Helmets to be Fitted Based on Laser Scan of Pilot’s Head Supreme Court Rulings Open Loopholes for Water Polluters German Family Granted Asylum in U.S. in Order to Home School Bush Administration Spied on Planned Parenthood It Pays Well to Join the Military Overdue Since 1921, Next Solar Storm Could Disrupt Much of World Supreme Court Decision May Allow Corporations and Unions to Make Anonymous Political Donations Widow of Texas IRS Building Terrorist Attack Victim Sues Widow of Killer Pentagon Agrees to Unblock Social Networking Sites for All Personnel Dr. Seuss’ Lorax Stands Up To Coal Gasification Iceberg the Size of Luxembourg Could Threaten Marine Life National Archives Wants Investigation into Destruction of John Yoo Torture Emails California to Sell State Building Named after Ronald Reagan Fortune Cookies to Promote 2010 Census VA Accused of Destroying Documents Sought by Freedom of Information Request CBS Billboards: Anti-Abortion Yes; Marijuana Legalization No Gun Rights Expand under Obama Average Wall Street Bonus Jumps 25% Obama Subsidies to Nuclear Power Industry Put Taxpayers at Risk Bank Sues Employees Who Demand Bonuses FTC Attacks Fake “Free Credit Report” Ads Contractors Outnumber Employees at Department of Homeland Security Give Haitian Garment Workers a Raise…to $5 a Day: Robert Naiman Cuban Political Prisoner Dies after Hunger Strike E-Waste Poses Growing Threat Around the World Navy Set to End Ban on Women in Submarines Defense Secretary Gates Attacks NATO’s Pacifism House Democrats Complain that Senate Democrats are Stalling 290 Bills Eric Cartman Accused of Stealing Weapons Meant for Afghan Police Toyota Acceleration Doubts May Give Hope to Man Imprisoned for Killing 3 in Car Crash Remittances Also Benefit the U.S. Economy, Report Shows Sen. Roberts (R-Kansas) Accused of Complicity in Torture and Destruction of CIA Tapes Banks Move Aggressively to Increase Credit Card Profits Most Medical Residency Programs Accept Drug Company Support Judge Reluctantly Agrees to SEC-Bank of America Deal

Collapse of Lehman Brothers: What Did Geithner Know and When Did He Know It?

Monday, March 15, 2010
Lehman Brothers managed to conceal from the outside world a multi-billion-dollar mess that was years in the making, according to an audit investigation released last week. But the size and scope of Lehman’s manipulative accounting has led some Wall Street critics to wonder what the New York branch of the Federal Reserve—led then by current Treasury Secretary Timothy Geithner—knew about the scheming that eventually led to the venerable bank’s collapse in 2008.   The audit report by Anton Valukas, the United States Trustee in the Lehman Brothers case, states that Lehman executives carried out “materially misleading” accounting tricks that hid billions of dollars in debt from regulators. Known internally as “Repo 105,” the bank’s leaders began as early as 2001 to move huge amounts of money—eventually $50 billion—off its books to “conceal its dependence on leverage, or borrowed money,” as The New York Times put it. “Repo” stands for “repurchase agreement,” or extremely short-term loans.   But Yves Smith of Naked Capitalism wonders if Lehman realistically could have hidden a fraud so large from the New York Fed, given Geithner’s close relationship with leading figures on Wall Street. “It also emerges that the NY Fed, and thus Timothy Geithner, were at a minimum massively derelict in the performance of their duties, and may well be culpable in aiding and abetting Lehman in accounting fraud and Sarbox violations,” writes Smith, referring to the Sarbanes-Oxley Act of 2002. “We need to demand an immediate release of the e-mails, phone records, and meeting notes from the NY Fed and key Lehman principals regarding the NY Fed’s review of Lehman’s solvency.” -Noel Brinkerhoff   NY Fed Under Geithner Implicated in Lehman Accounting Fraud Allegation (by Yves Smith, Naked Capitalism) The "Repo 105" Scam: How Lehman Fooled Everyone (Including Allegedly Dick Fuld) And How Other Banks Are Likely Doing This Right Now (by Tyler Durden, Zero Hedge) Report Details How Lehman Hid Its Woes (by Michael de la Merced and Andrew Ross Sorkin, New York Times) Lehman Brothers Bankruptcy Case (U.S. Bankruptcy Court, Southern New York)
 

Senate Rejects Equal Sentences for Crack and Powder Cocaine  -  Monday, March 15, 2010

The Senate is moving closer to reducing the disparity between jail times for cocaine and crack, but is not ready yet to equalize punishments altogether. The issue is a sensitive one because, according to recent statistics, African-Americans account for approximately 82% of arrests for crack, but only 27% of cocaine accounts. Under current federal law, someone caught with 500 grams of powder cocaine gets the same sentence as another person arrested for possession of just five grams of crack. This 100 to 1 disparity has long been criticized by criminal justice reformers, who are hoping Congress and the Obama administration will be open to changing minimum sentencing laws.   Last week, Senators Dick Durbin (D-Ilinois), who has advocated for sentencing equality, was forced to negotiate a deal with Jeff Sessions (R-Alabama) that would lower the 100 to 1 disparity to 20 to 1. Durbin admitted the compromise was not what he sought, but still represented progress. “My position is for one to one, equity and equality in sentencing, but in order to get things done you have to be prepared to make mutual concessions,” Durbin told The American Prospect. “That’s what we have done.”   The legislation was approved by the Senate Judiciary Committee and now goes to the full Senate for a floor vote. -Noel Brinkerhoff   Senate Says No to Ending Crack Disparity (by Adam Serwer, American Prospect) Durbin's Bid to End Sentencing Disparity (by Adam Serwer, American Prospect) Drug Sentencing—Obama Can Do More: Debra J. Saunders (by Erika K. Solanki, AllGov) Justice Department Moves to Equalize Cocaine Sentencing For All Races (by Noel Brinkerhoff, AllGov) Federal Crack Cocaine Sentencing (Sentencing Project) (pdf)

 

House Impeaches Judge Thomas Porteous…Only 15th in 207 Years    Monday, March 15, 2010

Not a single member of the House of Representatives objected to the impeachment of Judge G. Thomas Porteous, making him the 15th judge indicted by Congress since the founding of the country. Lawmakers voted 412-0, 410-0, 416-0 and 423-0 on the four articles of impeachment brought against Porteous, who serves on the U.S. District Court in New Orleans.   The 16-year veteran of the federal bench has been accused of hiding relationships with lawyers who represented clients in Porteous’ court. The impeachment articles say he accepted money, meals and other gifts from attorneys and a bail bond company, and that he lied in a personal bankruptcy filing. Porteous was appointed by President Bill Clinton.   A 12-member Senate committee will now try Porteous, but it will take a two-thirds vote of the full Senate to have him removed.   Of the 15 judges to be impeached since 1803, five have been in the last 25 years. The most recent case was that of George H.W. Bush appointee Samuel Kent of Texas, who resigned before he could be tried. Kent is currently serving a prison serve for obstruction of justice after being accused of sexual abuse. -Noel Brinkerhoff   Impeached Judge Thomas Porteous Will Be Tried by Senate Committee (by John Kelly, New Orleans Times-Picayune) Judge Thomas Porteous Impeached by U.S. House of Representatives (by Bruce Alpert, New Orleans Times-Picayune) Judge Thomas Porteous: Summary of 4 Articles of Impeachment Approved (by Bruce Alpert, New Orleans Times-Picayune) Imprisoned Judge Tries to Continue Collecting $174,000 Salary (by Noel Brinkerhoff, AllGov) Federal Officials Impeached (Wikipedia)

 

Taxpayers Lose as Treasury Helps Midwest Banc Holdings  -  Monday, March 15, 2010

Deciding a big loss is better than a complete loss, the Department of the Treasury chose to buy shares of Midwest Banc Holdings at above market value in order to keep the ailing institution from sliding even further into trouble. The U.S. government will accept $84.8 million of preferred shares from Midwest Banc in exchange for $15.5 million of common shares resulting in an 80% loss for the Treasury and taxpayers.   Analysts said the Treasury Department preferred to take the swap instead of risking that the bank might fold later down the road, making all of its shares worthless.   Midwest Banc is one of about 600 small banks that have received help from the Troubled Asset Relief Program (TARP). Unlike some larger institutions that have paid the government back and gotten out of TARP, these smaller banks remain in the program and owe the Treasury $130 billion. -Noel Brinkerhoff   Taxpayers Hit as TARP Takes a New Turn (by Dan Wilchins and David Lawder, Reuters) Midwest Banc Holdings, Inc. Announces Exchange by the United States Treasury of $84.8 Million of Preferred Stock into a New Class of Cumulative Mandatorily Convertible Preferred Stock; Results of Special Meeting of Holders of Common Stock

 

Legalize the Selling of Bone Marrow: Steve Chapman    Monday, March 15, 2010

It is for good reason that there are laws on the books preventing people from buying and selling organs in the United States, writes Steve Chapman of the Chicago Tribune. But concerns about ghoulish markets developing around dying patients should not apply to those in need of bone marrow transplants to combat cancer.   Unlike livers or kidneys, which can’t be replaced by a donor, bone marrow is naturally restored in the body after it is extracted. Chapman argues that bone marrow should be treated similarly to blood and sperm donations, for which people are compensated. Allowing donors to be paid for giving marrow would encourage more Americans to step up and give, providing more patients with a fighting chance for survival. -Noel Brinkerhoff   Dying People Shouldn't Have to be Beggars (by Steve Chapman, Creators.com)

 
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Domestic Policy/Agency of the Day

National Park Service

Located in the Department of the Interior, the National Park Service (NPS) is responsible for overseeing, maintaining and preserving the National Park System—which comprises 391 areas covering more than 84 million acres in every state (except Delaware), the District of Columbia, American Samoa, Guam, Puerto Rico, and the Virgin Islands. These areas include national parks, monuments, battlefields, military parks, historical parks, historic sites, lakeshores, seashores, recreation areas, and scenic rivers and trails. Notable areas such as the White House, the Grand Canyon, the Statue of Liberty and Gettysburg are also under NPS administration.
 

Domestic Policy Divisions

Foreign Policy/Nation of the Day

Netherlands

Located in northwestern Europe near the North Sea, the Netherlands was once a powerful seafaring nation, but repeated wars weakened the empire by the 20th century. The Netherlands was neutral during the first World War, but was occupied by the Germans during World War II, and the country lost the majority of its Jewish population to the Nazis. After the war, the Netherlands granted independence to many of its colonies and was one of the founding members of NATO. The country grew economically during the Cold War and adopted many liberal social policies, including the legalization of drugs, euthanasia and same sex marriage. In the 21st century, the Netherlands has come into conflict with its Muslim population, as it has strengthened it immigration policies and made arrests in the murder of film director and publicist Theo van Gogh in 2004. The arrests and subsequent convictions of van Gogh’s attackers were reversed on appeal and led to greater debate about the nature of Islam in Dutch society.
 

Nations

Meet Your Government

Birnbaum, Liz

S. Elizabeth (Liz) Birnbaum was sworn in as the Director of the Mineral's Management Service (MMS) on July 15, 2009. The Minerals Management Service is located within the US Department of the Interior, and manages the natural gas, oil and other mineral resources on the US outer continental shelf (OCS). MMS is responsible for collecting revenues generated from government leases of OCS lands as well as onshore mineral leases on federal and Native American lands to private oil and gas companies. It also collects and disburses more than $23 billion per year in revenues from federally owned offshore mineral leases and from onshore mineral leases on federal and American Indian lands.   Not only will Birnbaum be in charge of a yearly budget of $347 million and approximately 1,600 employees, but she will also be in charge of cleaning up a department known recently for its ethics scandals. Last year, more than a dozen employees of the Minerals Management Service were accused by the Interior Department’s Inspector General of rigging oil contracts, accepting gifts, having sex and doing drugs with employees of energy firms…among other accusations. Birbaum is expected to make over the department’s tainted image.   Elizabeth Birbaum was born in 1958 in Virginia. She began her higher education at Brown University, graduated in 1979, and received her associate bachelors degree in linguistics, magna cum laude. She went on to earn her law degree from Harvard Law School in 1984, after which she took on various positions that built a resume of to two decades of energy and environmental policy experience.   From 1987 to 1991 Birnbaum was counsel for the Water Resources Program of the National Wildlife Federation. From 1991 to 1999, she was counsel to the House Committee on Natural Resources, after which she served as the special assistant to the Department of the Interior’s Office of the Solicitor, which oversees legal policy on natural resource issues. Birnbaum moved up to Associate Solicitor for Mineral Resources from 2000 to 2001, supervising and managing a staff of attorneys that worked to provide legal counsel, develop regulations and conduct litigation on minerals management for the Minerals Management Service, the Bureau of Land Management, and the Office of Surface Mining and Reclamation.   When George W. Bush took over the White house, Birnbaum left government and, from 2001 to 2007 she was the Vice President for Government Affairs and General Counsel for the non-profit conservation organization American Rivers. Birnbaum returned to government in 2007 as staff director for the Committee on House Administration, where she oversaw strategy development, budget management and staff activities for the committee that manages legislative branch agencies.   MMS Director S. Elizabeth Birnbaum's Biography
 
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Supreme Court Decision Shakes up 2012 Presidential Race; Poll Shows New Leaders

The recent Supreme Court decision upholding the right of “personhood” for corporations and unions, and allowing them unlimited spending in elections appears to have had an immediate effect on the next presidential contest in 2012.   Previous polls had shown Mike Huckabee leading the race for the Republican nomination, with Mitt Romney and Sarah Palin close behind. However, a poll conducted this week by the Presidential Polling Organization, shows a new leader: AT&T Inc. ExxonMobil is now in second place, followed by the National Rifle Association. Huckabee, Romney and Palin have dropped to single digits. In a robo-tweet sent out to 18 million Twitter users, AT&T said that it was gratified by the support of Republican voters and that this validated their decision to spend $1 billion on marketing so early in the campaign.   On the Democratic side, Barack Obama, who had been considered a shoo-in for the nomination, now finds himself 3 percentage points behind Goldman Sachs and in a tie with the International Brotherhood of Electrical Workers.   Jumping right into policy issues, AT&T issued a press release announcing its intention, if elected, to disband the Secret Service and replace it with Blackwater/Xe. Not to be outdone, Goldman Sachs announced that if it took over the White House, it would eliminate the Pentagon. The War in Iraq would be handed over to World Wrestling Entertainment, Inc. and the War in Afghanistan to the World Boxing Council (WBC). This decision caused great controversy, but it died away when Goldman Sachs promised Yemen to the World Boxing Association (WBA).   In response to the changed playing field, left-leaning progressives and right-leaning Tea Partiers held a joint press conference to announce the creation of a third party: the Traditional Human Being Party (THB), which will only nominate a candidate who “has a heart and/or sexual organs.”   AT&T and Goldman Sachs released their own joint statement, dismissing the THB as a “Walkman-era publicity stunt in an age of iPods,” adding, “Corporations have been running the country for decades anyway. The Supreme Court ruling just makes it easier.” -David Wallechinsky