Roland Burris, the Sequel

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So Roland Burris has a son, Roland II. A son who–at a time when Burris I was already leveraging to get Obama’s seat in the Senate–got hired by a state agency to do stuff that he was probably not the best candidate to do.

The son of embattled Sen. Roland Burris is a federal tax deadbeat who landed a $75,000-a-year state job under former Gov. Rod Blagojevich five months ago, the Chicago Sun-Times has learned.

Blagojevich’s administration hired Roland W. Burris II as a senior counsel for the state’s housing authority Sept. 10 — about six weeks after the Internal Revenue Service slapped a $34,163 tax lien on Burris II and three weeks after a mortgage company filed a foreclosure suit on his South Side house.

[snip]

Burris II had resolved two federal tax liens in 2005 before being hit with the $34,163 lien in July. That lien against his property seeks unpaid taxes for 2004, 2005 and 2007.

A month after the IRS filed the lien, Burris II’s lender filed its foreclosure suit. Since Burris II and his wife got the $372,000 mortgage on July 18, 2006, they’ve paid less than $3,000 on it, the suit alleges. The balance due is $406,685, including interest and penalties.

I’m particularly interested in the foreclosure problems Roland II had on his house, given the fact that he only paid Mayor Daley a dollar for the land he built the house on.

Burris II built his home in the booming Bronzeville neighborhood on land he bought from the City of Chicago in 2000. City records show he paid $1 for the lot as part of an effort to clean up his once-blighted block.

I still have a gut feel that Burris II got a job in exchange for the job that Patti Blago got from the charity that Burris I’s partner sits on the board of which was making development scams possible for Mayor Daley. But I also suspect we won’t get to that part of the story until Burris Blago, Part 10.

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The Guy Who Refused to Wiretap Illegally Is Off to Jail

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The full 10th Circuit just decided to send Joseph Nacchio off to jail after reinstating his insider trading conviction.

A federal appeals court reinstated the insider trading conviction of former Qwest CEO Joe Nacchio on Wednesday and said he could be ordered to begin serving a 6-year prison sentence.

A three-judge panel of the 10th U.S. Circuit Court of Appeals had overturned the conviction last year, ruling that the trial judge improperly barred testimony from a defense witness.

But on a 5-4 vote, the full 10th Circuit said Wednesday the trial court was ”well within its discretion” to keep the witness off the stand.

Now, it’s likely that Nacchio will appeal to SCOTUS. Which means the Roberts Court will probably be refusing cert for Nacchio at about the time they overrule Vaughn Walker’s impending decision that retroactive immunity for telecoms–you know, the guys who broke the law when they cooperated with Dick Cheney’s illegal wiretap program?–is illegal. 

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Roland Burris’ Bad PR Strategy

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As Burris’ allies (and the Politico) would have it, the source of Burris’ current problems is his crappy PR strategy.

Here’s his former media relations guy, Bud Jackson, disclaiming any responsibility for his recent woes (Jackson worked with Burris until he became Senator).

As many of you may recall I actively helped my former client, Roland Burris, during his run-up to being successfully seated in the United States Senate.

Since that time, well … his team’s public relations efforts have been less than stellar. Turns out that, because my business is political communication, I need to let folks know that I have not been involved in the decisions that have led to the public relations fiasco over the past week. In fact, I actively counseled his team to take very different actions, to no avail…

I know based on my own private conversations and experience that Senator Roland Burris has been the victim of bad advice and, when set-up to fail, he certainly shall we say, has had less than adeqaute attempts to better and more clearly inform the public at a press conference, or two. It has ben painful to watch. Regardless, the senator has more than 30 years of public service and his integrity has never been questioned. [empahsis original]

And here’s the Politico’s "news" story explaining that Burris’ problems all stem from bad media strategy.

The crisis now threatening Sen. Roland Burris’ political career started with revelations about his entanglements with disgraced former Illinois Gov. Rod Blagojevich. 

But it was the way the situation was handled by Burris and his advisers — trapped between competing political and legal demands — that has made the problem much worse and has pushed him to the brink of losing his seat. In multiple interviews, several Senate aides and Burris confidants say the senator was unprepared from a public relations and political perspective to deal with the national media frenzy and ethics problems he now confronts.

[snip]

Absent an aggressive communications strategy, the press and the public have formed their own opinions that the senator got his new job on false pretenses. As his support crumbled, Burris made a calculated decision not to rile up his backers — many of whom are black — for fear that it would create a vicious racial debate. But this decision has made him appear completely isolated politically, with virtually nobody in Illinois or Washington speaking up for him.

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CREW: Obama and Greg Craig Stand with the Dead-Enders

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This morning, I noted that the January 21 filing supporting Bush’s crazy notions about email might well be the work of Dead-Enders. We know Dead-Enders submitted a brief in another suit naming the President as defendant during the week of the inauguration. And DOJ has added a new lawyer to the team, suggesting it intends to continue the litigation. 

From CREW, one of the plaintiffs in the email suit, we’ve got confirmation that the Obama White House intends to continue the litigation. 

Recognizing the incoming Obama administration may not have had an opportunity to fully evaluate the merits of the motion to dismiss, even though it was filed on behalf of the Executive Office of the President, one of the named defendants, on January 21, we waited several weeks before reaching out to the White House to suggest they consider withdrawing their motion. The response from the White House, on the afternoon of February 20 (the day our brief was due) was that we should go ahead and file. Thus, at least at this point, the new administration has indicated quite clearly it plans to continue litigating this issue.  

The lack of confirmed appointees at the Justice Department does not suggest this is an interim position, given that the White House is the defendant here with a fully-staffed White House Counsel’s Office. As for the change in DOJ counsel, it is simply the result of the trial attorney previously assigned to the case departing DOJ for a detail (in the White House Counsel’s Office). 

The CREW argument that this is not an interim position doesn’t hold much weight, given the al-Haramain example (the President is also the defendant in that suit and their stance has changed since the January 22 filing). 

But, for the moment, it does say that Greg Craig is not only continuing Bush’s legislation, but he’s hiring one of the DOJ Dead-Enders that got us to this point. We’re not going to get very far if Greg Craig sees fit to hire the Dead-Enders into the White House.

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Monday, 9AM, Roland Burris Is Still Senator

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I’ve lost my touch.

It used to be I’d go away for a week and Karl Rove or Alberto Gonzales would resign. Here we are, Monday morning after I’ve been gone a week (thanks to bmaz for really superb work last week!), and Roland Burris is still Senator.

Maybe if I do a recap of Burris’ week, though, and point out the looming holes in his story, then it’ll hasten his departure.

Fitz Joins the Fun

Remember how, in his press conference trying to explain how he forgot to mention his talks with RobBlago and John Harris, Burris couldn’t decide whether he had or had not been contacted by Fitz’ people regarding his negotiations on buying a Senate seat?

That question has now been solved, as Burris spent some time with federal investigators on Saturday.

U.S. Sen. Roland Burris was interviewed by federal authorities for several hours Saturday as part of the ongoing corruption investigation into charges that former Gov. Rod Blagojevich tried to sell a Senate seat for personal or political profit, sources familiar with the talks said.

Burris’ interview, which had been delayed for weeks, took place at his attorney’s offices in downtown Chicago. He has been informed he is not a target of the probe, the sources said.

Several details of this are interesting: what was responsible for the "weeks" delay in Burris’ testimony? Did he have to straighten out his story to the legislature first (though he did not do that with the State Supreme Court), so as to attempt to prevent perjury charges? Or did Fitz just want to make sure they had a complete catalog of the times Burris spoke to Blago’s people–including the multiple phone calls to John Harris that Burris still hasn’t ‘fessed to? Perhaps, too, Fitz wanted to wait until after the FBI started collecting information on Patti Blago’s tenure at the Chicago Christian Industrial League, since that was one way (through Burris’ partner Fred Lebed, who is on the board of the charity) that Burris could have influenced Blago in ways other than fundraising directly. Or, maybe, Burris was negotiating the terms on which he would be very forthcoming to Fitz?

Note that Burris’ secret sources (otherwise known as his attorney, I’m guessing) have gone to the Robert Luskin school of prosecutor-talk. Burris "has been informed he is not a target" of the probe. But did anyone mention anything about him being a subject?

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Inauguration Week Was a Busy Week for Dead-Enders

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A number of you have pointed to this story describing the "Obama" Administration support for the Bush Administration refusal to reconstruct Dick Cheney’s emails.

The Obama administration, siding with former President George W. Bush, is trying to kill a lawsuit that seeks to recover what could be millions of missing White House e-mails.

That claim is based on a January 21 motion to dismiss much of the National Security Archive suit against the Bush Administration, basically arguing that the only thing an NGO–and the Courts–can do is order the Administration to start restoring emails; they don’t have the grounds to force them to actually restore all the emails.

Check the date on that filing carefully.

January 21, of course, was Obama’s first full day in office, well before Eric Holder was sworn in as Attorney General. Heck, it was well before Obama’s team even got the email working at the White House themselves. And even, in a supreme bit of irony, it was the very same day when Obama signed an Executive Order saying incumbent Presidents, and not former ones, get to control the Presidential records of that former President.

January 21 was also just one day before the "Obama" Administration submitted a filing in the al-Haramain case that completely supported Bush’s unitary executive claims. Curiously, though, when the Obama Administration submitted another al-Haramain filing later in February, it adopted a significantly different strategy than they had in that January 22 filing. In other words, we know that the January 22 al-Haramain filing was indeed Dead-Enders submitting Bush’s strategy under Obama’s name; that strategy has since been changed.

We don’t–yet–have proof that the January 21 email filing was another case of a Dead-Ender submitting legal briefs in Obama’s name.  But there are two interesting details that suggest this might be the case. First, the ubiquitous Michael Hertz was–as he was on the al-Haramain case and just about everything else we’ve hated "Obama’s DOJ" doing–the senior official listed on the January 21 filing.

More interestingly, DOJ submitted a notice of appearance for Carlotta Poter Wells, a new lawyer to the government’s email team, about a week after this filing (though still before Holder was sworn in on Ferbuary 3). Read more →

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Lebanese Recipe For Economic Health: Go With What You Know

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Whether it is Henry Paulson, Tim Geithner or the yammering dipsticks on CNBC, it seems the there has been a headlong rush to seek analysis, wisdom and solutions from the very self proclaimed geniuses that put the US and the world in the problem to start with. Aren’t there any big bankers/finance ministers that really got it right? Turns out there are, and he comes from a most unexpected place. From the Los Angeles Times comes the story of Riad Toufic Salame:

Instead, the silver-haired banker became a hero by playing it very, very safe. In 2005, he defied pressure from the Lebanese business community and bucked international trends to issue what now looks like a prophetic decree: a blanket order barring any bank in his country from investing in mortgage-backed securities, which contributed to the most dramatic collapse of financial institutions since the Great Depression.

So as major banks in America and Europe were shuttered or partly nationalized and thousands of people in the U.S. financial sector were laid off, Lebanon’s banks had one of their best years ever.

Billions in cash continue to pour in to the relative safety of Lebanese savings accounts, with comfy but not extravagant yields of 6%. A nation shunned for years as the quintessential failed state has become a pretty safe bet, or as safe a bet as investors are likely to find in this climate.

Well, that is kind of refreshing, how did Salame do it? By being a rational technocrat, eschewing excesses, turning a deaf ear to cries for irrational rates of return, maintaining tight regulation, imposing conservative balance-sheet requirements, refusing to launder dirty money and, most critically:

When the real estate boom crested this decade and investors began bundling debt into nebulous financial instruments fueled by easy credit, the pressure was on for Salame to let banks take advantage of the high yields.

But Salame steadfastly refused.

He says the mortgage-backed securities worried him from the start. He watched curiously as investment bankers engaged in what he calls "rituals" to please the credit ratings agencies and got back such safe assessments of their products. He didn’t get it. Why were these considered safe investments? They were just too complicated. They went against a major tradition in Lebanese and Middle Eastern banking: Know to whom you’re fronting cash and who’s going to pay you back.

"We could not really sense who would be responsible in the end Read more →

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Louisiana Gubernatorial Sitcom

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Graphic by Twolf
Graphic by Twolf

I tell you what, those Republicans may not have squat for rational ideas, but they sure have some humor. Heck, it was less than two days ago we were watching Crockett and Tubbs Steele and Boner in "DC Vice". Fear not intrepid viewers, these jokers are bringin da funny all over. Our latest episode involves that wacky character Urkel Jindal, Governor of Louisiana. From Yahoo/Politico:

Louisiana Gov. Bobby Jindal announced Friday that he will decline stimulus money specifically targeted at expanding state unemployment insurance coverage, becoming the first state executive to officially refuse any part of the federal government’s payout to states.

In a statement, Jindal, who is slated to give the Republican response to President Barack Obama’s message to Congress on Tuesday, expressed concern that expanding unemployment insurance coverage would lead to increased unemployment insurance taxes later on.

Wow, the fine folks in Louisiana must find this hilarious since most governors are constantly scrapping to get their states funding they are in dire need of. And, as you may have heard, there are needs in Louisiana, part of Katrina ground central. Too bad they no longer have Dollar Bill Jefferson around to keep that stimulus money on ice.

What the hell though, life must be a hoot in a state run by a guy named Piyush who changed his name to Bobby because he identified with a character on the Brady Bunch. Personally, I don’t get it. He looks like Urkel to me.

[Awesome graphic by Twolf!]

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Down On The Border: State Of War In Mexico

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Via Laura Rozen comes reference to a chilling piece by Sam Quinones in Foreign Policy on the drug smuggling violence that has escalated to a total state of war rivaling levels in Iraq.

There are so many hot spots for attention these days – Iraq, Afghanistan, Pakistan, Gitmo, not to mention the ops that are being run on US citizens by their own government as a result of the Bush/Cheney decision to gin up a military rationale for surveillance domestically – that it is easy to forget what is going on just across the border. Easy, at least, until you take in Sam Quinones’ tale:

That week in Monterrey, newspapers reported, Mexico clocked 167 drug-related murders. When I lived there, they didn’t have to measure murder by the week. There were only about a thousand drug-related killings annually. The Mexico I returned to in 2008 would end that year with a body count of more than 5,300 dead. That’s almost double the death toll from the year before—and more than all the U.S. troops killed in Iraq since that war began.

But it wasn’t just the amount of killing that shocked me. When I lived in Mexico, the occasional gang member would turn up executed, maybe with duct-taped hands, rolled in a carpet, and dropped in an alley. But Mexico’s newspapers itemized a different kind of slaughter last August: Twenty-four of the week’s 167 dead were cops, 21 were decapitated, and 30 showed signs of torture. Campesinos found a pile of 12 more headless bodies in the Yucatán. Four more decapitated corpses were found in Tijuana, the same city where barrels of acid containing human remains were later placed in front of a seafood restaurant. A couple of weeks later, someone threw two hand grenades into an Independence Day celebration in Morelia, killing eight and injuring dozens more. And at any time, you could find YouTube videos of Mexican gangs executing their rivals—an eerie reminder of, and possibly a lesson learned from, al Qaeda in Iraq.

This is neither new nor isolated. When I was younger, I used to go down to Tijuana, it was a great time. It really was easy and fun; what Chinatown was to LA, Tijuana was to San Diego. No longer is even the formerly relatively civil Tijuana docile and appropriate for casual strolling about. Long ago, back in the sixties, on our way back to Read more →

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Why GM Matters: Inside the Race to Transform an American Icon

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Why GM Matters

Why GM Matters

[As I indicated yesterday in the post "Why American Industry (And Its Future) Matters", we have the privilege of having author William J. Holstein today at Emptywheel and Firedoglake. Mr. Holstein has a long and rich history as a journalist and author. Most importantly for today, he has plunged into the history and ethos of General Motors and produced an incredible work detailing just how critical General Motors, the American auto industry, and American industry itself is to the United States economy and way of life.

As Michael Fitzgerald observed at bnet.com, "Holstein is using GM as a symbol for whether it makes sense for the U.S. to bother with manufacturing. That might sound odd for a country that for now probably remains the world’s largest manufacturing economy. But Holstein argues that our political and financial leaders don’t get manufacturing, and don’t think it’s important. This is the crux of the Main Street vs. Wall Street debate, and it is shaping up as the core fight of economic policy over the next few years: do we get a justifiable return if we invest in making things, or should we focus on information-driven innovation?"

I think that is right. Since we cannot layout the entire book in the intro here, Bill and I decided to focus on the emerging technology, and specifically battery/electric technology, and the new product lines, that GM is producing. With that said, what follows are prepared remarks in that regard by Bill Holstein. Take a look, and then join us in discussion. I am looking forward to the best and brightest that inhabit our little corner of the world participating in and driving this. Oh, and visit Bill anytime at his blog WilliamJHolstein.com Also, I heartily recommend purchasing his book, it is a fascinating look into a critical issue of our time, not to mention a great read. – bmaz]

*****
By: William J. Holstein:

It’s time to cut through all the nonsense about General Motors “not making cars that Amrericans want to buy.” The truth is that GM has seized design and performance leadership over its longtime nemesis, Toyota. Toyota’s cars these days resemble appliances, i.e. refrigerators on wheels. They don’t break, but they hardly inspire.

In terms of their physical appearance, GM vehicles have real attitude. The new CTS has a very bold and aggressive front end that designer John Manoogian came up with at the last moment. He and his team decided to take the V-shape that used to stop at the bumpers and let it plunge below the bumpers toward the ground. They also inserted grilles on the right front panels merely for decorative purposes. That nearly drove the engineers crazy because of the challenge of stamping a piece of sheet metal with an odd hole in the middle of it. But they did it. At first, the competition could not believe that GM had figured out how to achieve that.

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